1
Message from the Chairman
and Chief Executive Officer
To: All Shareholders
First of all, on behalf of the highest Executives of the Company, we would like to make
an apology to all our shareholders that the sales figure in 2013 did not meet the planned target.
The main causes were analyzed into three parts as follows:
1. Competitive Situation: The entry of competitors in the “Home Shopping” business.
Even though preparations had been made to cope well with the situation but it had to be
admitted that the knowhow of both Korean number one and two resulted in direct impact
towards the Company’s sales figure. From the whole picture, even though the Company’s
existing market had not been penetrated but new market had been created without our
participation in this new market at all, and the additional market value created by these two
companies was estimated to be about Baht 1,000 million.
2. Economic Situation: Consumers’ spending power and temperament started to
decline since the middle of 2013, and importantly, the decline in spending power happened
in both Bangkok and the provinces. In the past, Bangkok would be the variable factor while
the provinces would be more certain due to their wide area and number of customers.
The Company analyzed this as being the rapid expansion of the real estate property, condominium,
the 1st car policy, and weather conditions. Hence, overall GDP growth was at 4% level instead
of the targeted 5.5%.
3. Human Resource Management System: In 2012, our work processes were adjusted
and improved to generate more consistent and coordination but people management
had been neglected. With incomplete and non-compact enough human resource development
system, the experienced call center team had been recruited by other firm. Even though problem
had been solved very quickly by recruiting the replacement but training process for employees
to be competent with their works did not result in the satisfactory manner. The Company, then, realized that its human resource development plan was not good enough and decided
to hire a consultant firm, “Aon Hewitt” to help build the new human resource development system.
The process started from salary structure to the successor process which was completed within
7 months as planned. Thus, in the 4th quarter of 2013, the Company expenses for consultant
fee as well as training courses for nearly 1,500 persons was nearly at Baht 21 million. This resulted
in less profit in 2013 than in 2012, but the Company believed that this investment would
result in operating results of 2014 to be accordance with plan.
However, important events in each quarter were listed for acknowledgement to all shareholders as follows:
1st quarter
The Company registered good sales and operating results as a continuation
from 2012 in the 1st quarter
Even though total earning of each employee was higher than the minimum wage but
interpretation on various other incomes would be counted into the minimum wage or not ?
As the Company emphasized on the operating performance, income was paid in the
low range while commission would be paid higher than normal in order to generate strong primary
efficiency. However, in order to have successful transition, the Company had adjusted the minimum
wage to Baht 9,000 to be in line with the law.
2nd quarter
In this 2nd quarter, sales lowered a little but still maintain level of the net profit
The Company issued and offered new ordinary shares for capital increase of registered
shares of 94,000,000 shares at par value of 0.50 Baht to original shareholders with right offering
at 4 original ordinary shares to 1 new ordinary share at par value of 4.50 Baht
The Company offered total shares of 93,999,992 shares and cash received from share offering
was Baht 422,999,964.
During the end of quarter, the call center team had been recruited by other firm resulting
in the Company’s sales figure was not as planned.
3rd quarter
From losing the call center team in the 2nd quarter, the Company tried to correct the situation
but to no avail. The Company, then, decided to hire a human resource management consultant
firm, Aon Hewitt, to help build the new human resource system from salary planning to the
successor plan.
2
TV Direct Public Company Limited
3
Hence. From July onwards, over 1,500 personnel of more than 10 groups, had been externally
trained in order to build the long term organization commitment.
4th quarter
The Company’s revenue was similar to the 3rd quarter but suffered loss in October from the following causes:
1) The Company decided to use “One Price Policy” in all of the sales channels, thus,
creating shock in the first operating period and resulted in the lowest sales during the past
3 years and also resulted in loss in October 2013 at more than Baht 10 million.
2) Investment in human resource management system was approximately at
Baht 21 million for hiring consultant and training for employees.
However, later in November and December, the Company was able to generate highest
sales during the past 3 years as well. This could be stated that the decision to step backward
2 steps delivered good result later on.
On the corporate social responsibilities the Company still continuously emphasizes in
social activities in conjunction with business operations. The Company continuously engages
in social and education activities whether in the “A Drop of Blood for Life” project, or “Cooperative
Education Project” project, with philosophy and believes that “If we take care of society, society
will take care of us”. The Company has inserted this as obligation of the Company in order to
build continuously as our planning and guideline with emphasizing on result.
Concerning good corporate governance, even though the Company has been registered
in the MAI stock market recently, the Company realizes that the guiding principles on good
corporate governance of registered company in the Stock Exchange of Thailand are important
and has good standard.
With the commitment and willingness in management with transparency and good
corporate governance, the Company has been evaluated on the corporate governance of
the registered company in 2013 with “Good” level from the “Thai Institute of Directors” since
its first year after registration in the stock market. The Company will be continuously committee
in promoting and developing the good corporate governance as always.
The Company’s Board of Directors stipulates policy on good corporate governance
in writing, and considers to review the good corporate governance and manual on ethics for the
Company and its subsidiaries and to follow up on reviewing the policy every year and publishes
these in the Company’s website.
The Company realizes the importance of all stakeholders’ rights whether internal stakeholders
such as employees, and the Company’s management, or external stakeholders such as customers,
trade partners, competitors, creditors, Government agencies, communities, and all related parties.
The Company realizes that supports from various stakeholders will create competition, and
build profit for the Company which can be considered as long term success for the Company.
From all the above that has been presented, the Company encounters many obstacles
but the most important is that we has been through together fairly well at the end. This is from
cooperation from employees, management, Directors of all committees, and all shareholders that
understand and support us all along. The Directors’ teams and management still have determination
and commitment to drive us forward towards the next year.
On behalf of the Company’s Board of Directors, we would like to show our appreciations
to all shareholders, investors, customers, business allies, Government agencies, and benefactors
who have confident, and support us all along. The most important of all is the employees who
dedicate their bodies and minds together in moving our organization forward strongly and consistently
even in difficult times. The Company will still emphasize on operating its business under the concept
“Entertaining People with Information” with transparency and adhering to good corporate
governance together with social responsibility, and hoping that the Company will grow and move
forward, and generate good returns to all shareholders similar to trusts given to the Company.
4
Mr. Phongsuree Bunnag
Chairman of the Board
TV Direct Public Company Limited
Mr. Songpol Shanmatkit
Chief Executive Officer
5
6
TV Direct Public Company Limited
7
8
TV Direct Public Company Limited
-Master degree in Master
Mr. Phongsuree Bunnag
GIBA (SASIN)
(Authorized Signatory)
Nomination and
Company Limited
President – Human
Resources
-Training in Director
Accreditation Program
(DAP) class 90/2011.
Management
Bank Thai Public
2000-2009
Company Limited
TV Direct Public
Company Limited
TV Direct Public
Company Name
Executive Vice
State University.
Committee
Chairman of the
- Present
the Board
- Present
Dec. 24, 2012
Chairman of
Sept. 1, 2009
Position
Banking business
Marketing
Multichannel
Marketing
Multichannel
Type of Business
Working experiences during last 5 years
Remuneration
-
Family
relationship
with other
executives
Duration
Northeast Missouri
0.03%
Stake in the
Company
including spouse
and minor (%)
-Bachelor of Arts,
Chulalongkorn University.
of Management MM,
Chairman of the Board
68
Education /
Training course from
Thai Institute of
Directors(IOD)
Name / Position Age
Details of Executives and controlling persons
of the Company as at December 31, 2013
9
10
TV Direct Public Company Limited
Remuneration
- Present
Business Administration
- Present
Certification Program
Satellite television
business
Committee
Development.
Company Limited
Director and Audit Resources Public
- Oct. 2012
(SFE) class 13/2011.
Investment in the
Investment
Independent
Sino-Thai
Co., Ltd.
Indo-China
TV Direct
Company Limited
Multichannel Marketing
March 2010
Director
Director
TV Direct Public
Multichannel Marketing
Type of Business
and Execution of Strategy
Successful Formulation
class 146/2011, and
March 2011
-Training in Director
Assumption University.
Faculty in Administration,
Nomination and
Dec. 24, 2012
Executive Officer
-Bachelor degree from
Director, and Chief Company Limited
Executive Officer
Maturanont
Assumption University.
- Present
Ms. La-orsri
Company Name
Director, Executive TV Direct Public
Committee Chief
May 1, 1999
Spouse of
Position
Working experiences during last 5 years
Management, from
8.69%
Family
relationship
with other
executives
Duration
Signatory) Executive
-Master degree in
Stake in the
Company
including spouse
and minor (%)
Computer Engineering
43
Education /
Training course from
Thai Institute of
Directors(IOD)
Director (Authorized
Mr. Songpol Shanmatkit
Name / Position Age
& Finance, Dominican University of California.
Executive Committee
Head of Home Shopping
TV Direct Public
Company Name
154/2011.
fication Program class Co., Ltd.
Thai Solar Energy
- Outbound call
- Finance
Company Limited
General Manager TV Direct Public
Feb. 2007
Company Limited
Jan. 2005 -
center
General Manager TV Direct Public
Dec. 2008
Multichannel Marketing
Multichannel Marketing
alternative energy
(Original name was
Mar. 2007 -
engineering and
Co., Ltd.
“Response TV”)
Consultancy on
Hotel
Electricity generating
TBM Solution
Director
Co., Ltd.
Managing Director North Pattaya Plaza
General Manager
Co., Ltd.
2000 - Present
2006 - 2008
2008 - 2009
2011
(DAP) class 90/2011, and in Director Certi
March - July
Accreditation Program Multichannel Marketing
Multichannel Marketing
Multichannel Marketing
Type of Business
TV Direct Indo-China Investment
1, 2013
Chulalongkorn University.
Director
Marketing Officer Company Limited
-Training in Director Chief Direct
TV Direct Public
Company Limited
2009 - March
Shopping
- Present
TV Direct Public
August 21,
Head of Home
Executive Director Company Limited
Director
Position
Working experiences during last 5 years
March 1, 2013
- Present
Maturanont
Aug. 21, 2009
Brother of
Ms. La-orsri
Family
relationship
with other
executives
Duration
subject: Government,
4.96%
Stake in the
Company
including spouse
and minor (%)
Political Science Faculty -Bachelor degree from Faculty, in Inter Business Signatory)
-Master degree from Pacific Rim Basin 43
Education /
Training course from
Thai Institute of
Directors(IOD)
Director (Authorized
Mr. Thanabul Maturanont
Name / Position Age
11
12
TV Direct Public Company Limited
Executive
- Present
Business), Tarleton State
13/2012.
Management (MIR) class
of Internal Control & Risk
Monitoring the System
(MIA) class 13/2012, and
Internal Audit Function
16/2012, Monitoring of
Reporting (MFR) class
Quality of Financial
8/2012, Monitoring the
Management (MFM) class
2005 - 2008
2001 – Present
2008
Ministry of Energy
Rattana Bundit
University
Graduate School
University Texas
Chairman of the
At Large
Government agency
Multichannel Marketing
Multichannel Marketing
Multichannel Marketing
Type of Business
Educational Institution
Educational Institution
Government agency
Ministry of Commerce Government agency
Ministry of Energy
Company Limited
TV Direct Public
Company Limited
TV Direct Public
Company Limited
TV Direct Public
Company Name
Research Professor Tarleton State
Ministry of Energy
Secretary to the
Organization
Monitoring Fraud Risk
Director of Public
Warehouse
2007 - 2008
Ministry of Energy
Advisor to the
(ACP) class 11/2006,
Audit Committee Program
(DCP) class 61/2005,
Certification Program
-Training courses in Director
University.
2008 - 2011
in monetary and fiscal
Audit Committee
Director
- Nov. 30,2012
policy, Thammasat
Independent
Nov. 24, 2010
from Faculty of Economics
-Bachelor of Economics
Committee.
Remuneration
University, Texas, USA
Nomination and
Committee
Chairman of the
Dec. 1,2012
Position
Working experiences during last 5 years
- Present
-MBA – Business
Executive Committee
-
Family
relationship
with other
executives
Duration
Dec. 24, 2012
Assumption University
0.03%
Stake in the
Company
including spouse
and minor (%)
Administration(General
Engineering Management), -Ph.D. (Computer and Chairman of the
60
Education /
Training course from
Thai Institute of
Directors(IOD)
Director
Dr. Pisut Chalakornkul
Name / Position Age
Name / Position Age
Education /
Training course from
Thai Institute of
Directors(IOD)
Stake in the
Company
including spouse
and minor (%)
2002 - 2004
2004 - 2005
Director and
2005 - 2006
Small and Medium
Plc.
Airports of Thailand
Company Name
of Thailand Government agency
Financial Institution
Public utility
Type of Business
Executive Officer
Co., Ltd.
Fuji Xerox (Thailand)
Automation
Director and Chief Government agency Innovative Office
Liptapanlop)
(Mr. Suwat
Prime Minister
Advisor to Deputy Development Bank
Executive Director Enterprise
Advisor
Position
Working experiences during last 5 years
2006
Family
relationship
with other
executives
Duration
13
14
TV Direct Public Company Limited
(DAP) class 90/2011
Accreditation Program
Solution Co., Ltd.
Retail Business
Director
Apr. 28, 1994
- Present
Co., Ltd.
- Present
B.B. Battery Asia
Aug. 11, 2008
Director
Co., Ltd.
USE Electronics
Director
June 14, 2000
- Present
Co., Ltd.
- Present
RBS Products
distributer
Product shelves
Battery distributer
installation
Security system
building
furniture for home and
used decorative
Buying and selling
Director
Tool and equipment
medical equipment
of medicine and
Importer and distributer
Nov. 25, 2006
Reyon Asia Co., Ltd.
Vieda Med Co., ltd.
distribution
Electronic equipment
retailer
Director
Director
Co., Ltd.
General Manager USE Electronics
Multichannel Marketing
Multichannel Marketing
Type of Business
- Present
Nov. 14, 2002
- Present
May 12, 2010
2005 - Present
Present
Company Limited
May 25, 2011 - Executive Director TV Direct Public
Company Limited
TV Direct Public
-Training in Director
Director
Tokyo University, Japan
Present
Aug. 17, 2007 -
Company Name
Executive Committee
-
Position
Working experiences during last 5 years
Electronics Engineering, 0.86%
Family
relationship
with other
executives
Duration
Engineering Faculty in
-Bachelor degree from
Stake in the
Company
including spouse
and minor (%)
Director
48
Education /
Training course from
Thai Institute of
Directors(IOD)
Wirojwattanakul
Mr.Wirasack
Name / Position Age
Type of Business
14/2012
Committee class
of the Compensation
class 35/2011, and Role
Distribution of personal
care products
Gillette (Thailand)
Co., Ltd.
Country Director
on management
Advisor and consultant
1992 - 2006
AMJ Consulting
Hypermarket
Co., Ltd.
Director
Aug. 2006
System Co., Ltd.
Ekachai Distribution
household paint
distribution of
Production and
- Present
Head of Grocery
(Thailand) Co., Ltd.
Officer
2007 - 2008
Nippon Paint
Chief Operating
and its by products
(Thailand) Co., Ltd.
2008 - 2011
distribution of paint
Decorative Coating
Accreditation Program
Audit Committee Program
distributer
Music and movie
Multichannel Marketing
(DAP) class 87/2011,
Company Limited
DNA 2002 Public
Company Limited
TV Direct Public
Co., Ltd.
TV Direct Indo-China Investment
Company Name
Production and
Director
Audit Committee
Director
Director
Position
Working experiences during last 5 years
Nippon Paint and
2011 - Present
Assumption University
-Training in Director
Dec. 2010
- Present
in General Management,
Administration Faculty,
- Present
2013-Present
-BBA from Business
-
Family
relationship
with other
executives
Duration
May 4, 2011
0.21%
Stake in the
Company
including spouse
and minor (%)
University of Leicester
in General Management,
Director
-MBA from Business
Administration Faculty
42
Education /
Training course from
Thai Institute of
Directors(IOD)
Mahavanidvong
Mr. Chalermpong
Name / Position Age
15
16
TV Direct Public Company Limited
enterprises.
class 7/2002, Charter Director Class(CDC)
telecommunication tions of the Senate.
Science, technology
enhance the field of and telecommunica-
consider ways to
Chairman Program(RCP)
2011
Committee Program(ACP)
class 1/2001, Role of the
Past – Apr.
FND class 1/2001, Audit
Company Limited
TV Direct Public
Company Limited
TV Direct Public
CIMB Thai Plc.
Co., Ltd.
Krungsri Credit Card
Company Limited
TV Direct Public
Company Limited
TV Direct Public
Company Name
Sub-committee to Commission for
Audit Committee
Accreditation Program
(DAP) class 2/2000,
Chairman of the
Director
Independent
Audit Committee
Director
Independent
President
Senior Vice
President
-Training in Director
- April 2013
- Present
April 2013
Australia
-B. Ec. (1st Class Honour),
Audit Committee Member
-
Nov. 24, 2010
University
0.03%
2004 - 2010
- June 2013
Apr. 2011
Audit Committee
Director
- April 2013
University of Western
Economics), Northwestern
-Ph.D. (Candidate, Independent Director
70
Chintakanond
Asst. Prof. Anucha
UFS class 13/2008.
(DCP) class 98/2008, and Certification Program
-Training courses in Director
Chulalongkorn University.
Faculty of Science,
Independent
Nov. 3, 2010
State University
-Bachelor degree from
Audit Committee
Advertising, North Texas
Committee
Director
- Present
Chairman of the Audit
Independent
April 2013
Chairman of the
-
Position
Government agency
Multichannel Marketing
Multichannel Marketing
Commercial bank
provider service
Credit card and credit
Multichannel Marketing
Multichannel Marketing
Type of Business
Working experiences during last 5 years
Faculty in Marketing /
0.03%
Family
relationship
with other
executives
Duration
Communication Arts
-Master of Arts from
Stake in the
Company
including spouse
and minor (%)
Independent Director
59
Education /
Training course from
Thai Institute of
Directors(IOD)
Charukitpaisarn
Mr. Tada
Name / Position Age
Name / Position Age
class 1/2007, Successful
Formulation and Execution
of Strategy(SFE) class
12/2001, Monitoring the
Quality of Financial
Reporting (MFR)
class16/2012, Role of
the Nomination and
Governance Committee
(RNG) class 3/2012, and
Role of the Compensation
Committee(RCC) class
15/2012, Monitoring the
system of internal control
& Risk Managements
14/2013, Advanced of
Audit committee 11/2013
Education /
Training course from
Thai Institute of
Directors(IOD)
Stake in the
Company
including spouse
and minor (%)
2000-2002
Audit Committee
Director (RepreKrungthai Bank
sentative of Minor
Shareholder) and
Krungthai IBJ
Leasing Co., Ltd.
Financial Institution
Leasing Business
Chairman of the
Board
Government agency
Medical equipment
supplier
2002-2008
Econtech Supply
Co., Ltd.
Audit and
Office of the National Government agency
Evaluation
Anti-Corruption
Committee
Chairman of the
Audit Committee,
management,
monitoring and
evaluation unit
Advisor
2008 - Present
Health Benefit
Insurance and claim
Consultants Co., Ltd. consultant
Skin care services,
and production and
distribution of skin care
products
2011– Present
Advisor
2008 - Present
Pan Rajdhevee
Group Plc.
Securities
Type of Business
Economic advisor National Economic
on macroeconomic and Social Advisory
financing
Council
committee
Advisory to the
Chairman and
the International
Affairs and
Business
Development
Dept.
1993 - Present
Phillip
Securities(Thailand)
Public Company
Limited
Company Name
2006 - 2009
Independent
Director
Audit Committee
Position
Working experiences during last 5 years
2009 - Present
Family
relationship
with other
executives
Duration
17
18
TV Direct Public Company Limited
Mr. Sakesun
Vipusitwalakul
Head of Finance and
Accounting
45
-Bachelor Degree from
Business Administration
Faculty in Accounting from Ramkhamhaeng University.
0.00%
-
Administration, California
State University, USA
-Training course in Director
Certification Program
(DCP)
-Bachelor Degree Business
Mr. Suthep
Suebsantiwongse
Independent Director
Audit Committee Member
69
Stake in the
Company
including spouse
and minor (%)
Education /
Training course from
Thai Institute of
Directors(IOD)
Name / Position Age
-
-
Acting Finance
Director
Accounting
Director
Finance and
Accounting
Manager
Finance and
Accounting
Manager
Accountant
Accounting Chief
Aug. 16 2003
- Present
1996 - 2003
1992 - 1996
1991 - 1992
1990 - 1991
Director
2008 – 2009
July 1, 2013
- Present
Chairman of the
Board
2010 - 2013
Head of Finance
and Accounting
Director
2013 - Present
Sep. 1, 2013
- Present
Independent
Director Audit
Committee
Position
Sale and service for
mobile-phone and
related products
Multichannel Marketing
Multichannel Marketing
Multichannel Marketing
Financial Institution
Leasing
Sport Club
Multichannel Marketing
Type of Business
Saha Buncheekij
and Law
Asia Tape Co., Ltd.
Accounting services
and legal advisor
Cassette tape production
Rota Group Co., Ltd. Record and Cassette
tape production
NTL Info. Co., Ltd.
TV Direct Public
Company Limited
TV Direct Public
Company Limited
TV Direct Public
Company Limited
Islam Bank
Amanah Leasing
Public Company
Limited
The Royal Bangkok
Sports Club
TV Direct Public
Company Limited
Company Name
Working experiences during last 5 years
Jan. 2013
- Present
Family
relationship
with other
executives
Duration
Mr. Wichian Manapongpan
Executive Director
Company Secretary
Ms. La-orsri Maturanont
Head of Marketing
Mr. Pongchai Shanmatkit
Head of DRTV Business
0.02%
-Master Degree from Business Administration Faculty
in Business Administration,
Kasetsart University.
50
-Certified Public Accountant
- Training course in Director Accreditation Program
(DAP) class 66/2007.
-B.A. from Accounting
Faculty in accounting Ramkhamhaeng University
8.69%
-
Stake in the
Company
including spouse
and minor (%)
- Master Degree, Marketing
City University USA
-Bachelor Degree, Marketing
City University USA
Faculty of Engineering
King Mongkut’s Institute of Technology Thonburi
-Bachelor Degree
Education /
Training course from
Thai Institute of
Directors(IOD)
44
40
Name / Position Age
Spouse of
Mr. Songpol
Shanmatkit
-
Brother of
Mr. Songpol
Shanmatkit
Multichannel Marketing
Multichannel Marketing
Sri Thai Food and
Beverages Plc.
Vice President
of Finance and
Accounting
1991 - 2006
Producing and distributing ready-made food
Warehousing ,and
ground services for
aircrafts.
TV Direct Indo-china Investment
Co., Ltd.
TV Direct Public
Company Limited
Finance and Ac- Thai Airport Ground
counting Director Services Co., Ltd.
Director
Chief Financial
Officer
Executive Director TV Direct Public
Company Limited
Multichannel Marketing
Multichannel Marketing
TV Direct Public
Company Limited
Company Secretary TV Direct Public
Company Limited
Director,
Merchandise &
Marketing
Multichannel Marketing
Multichannel Marketing
Type of Business
Multichannel Marketing
TV Direct Public
Company Limited
TV Direct Public
Company Limited
Company Name
Head of Marketing TV Direct Public
Company Limited
Director, DRTV
Business
Head of DRTV
Business
Position
Working experiences during last 5 years
2007 - 2009
Mar. 2011
- Present
Mar. 1, 2010
- Present
Mar. 1, 2010
- Present
Sep. 1, 2013
- Present
2013- - resent
1999-March
2013
March 1, 2013
- Present
1999 - March
2013
March 1,
Family
relationship
with other
executives
Duration
19
General Information
Name and address
TV Direct Public Company Limited
Registration No. 0107554000101
Type of business
The Company conducts its business on distribution of products and services through
the Multi Channel Marketing. Business operational structure of the Company can be
segmented into 5 main channels as followings :
1. TV Marketing : The distribution of products and services through normal Free Television,
Satellite Television, Cable-TV membership and Digital Television.
2. Direct Marketing : The distribution of products and services through Outbound Call Center,
Mail Order, and E-Commerce, including Call Center Services and Customer Services.
3. Conventional Marketing: The retail distribution of products and services through
TV Direct Showcase, including wholesaling through domestic and foreign customers.
4. Direct Sale : Single level selling.
5. Services : The Company offers advertising media production services and advertising
air-times provider and event organizer services.
20
TV Direct Public Company Limited
21
Registered Capital
246,750,000 Baht
Divided into 493,500,000 shares at par value of Baht 0.50 per share
Paid-up Capital
234,999,996 Baht
Divided into 469,999,992 shares at par value of Baht 0.50 per share
Address
25, Watcharaphon Road, Tarang, Bangkhen, Bangkok 10230 Home page : www.tvdirect.tv
Tel.02-666-0999
Fax.02-666-0488
Other reference persons Share registrar : Thailand Securities Depository Co., Ltd. Address 62 The Stock Exchange of Thailand Building, Rachadapisek Road,
Klongtoey, Bangkok 10110
Tel.02-229-2888 Fax.02-654-5427
Auditor : PricewaterhouseCoopers ABAS Ltd.
Address 179/74-80 South Sathorn Road Bangkok, 10120
Tel.02-344-1000 Fax.02-286-2666
Corporate Social Responsibility
A Drop of Blood for Life
January 18, 2013 / April 19, 2013 / July 19, 2013 / October 18, 2013
TV Direct Public Company Limited or TVD recognizes the importance of social participation and has initiated
a project called “A Drop of Blood for Life”. This project has been in coordination with the National Blood Center
of the Thai Red Cross Society, in receiving donations of blood and stem cells from our employees and people
in the vicinity nearby since 2004 till present. The donations have been arranged in every 3 months which up to now
total to 8,210 donors, and with the amount of 1,800.00 cc of blood already delivered to the Thai Red Cross Society. At present, the National Blood Center of the Thai Red Cross Society requires to receive daily blood donation
in Bangkok and its vicinity at 1,500 – 1,200 units or 46,000 units per month to be able to have enough blood reserve
to help those in need of blood.
22
TV Direct Public Company Limited
23
“TV Direct” Donates “Eagle Eyes” Sun Glasses
June 24, 2013
Miss La-orsri Maturanont, Head of Marketing of TV Direct Public Company Limited which is the distributer of
“Eagle Eyes” sun glasses from USA, has started the “Clear Sky Thailand” project in order to save and protect the
pilots’ eyes in the Royal Thai Air Force. The total of 130 “Eagle Eyes” sun glasses have been donated to Air Vice
Marshall Charnlit Paligarnon, Chief of the Flying Training School with his delegates at the headquarter of the Flying
Training School in Kratip sub-district, Kamplangsaen district, Nakorn Pathom province in order to use during performance
of duties for the Royal Thai Air Force pilots.
Cooperative Education Project
TV Direct Public Company Limited, in association with various leading education institutions, has organized the
cooperative education project which is the education system that emphasizes on actual practice in the establishment
systematically. The learning process will be done in the school together with real practice at the actual establishment
and the students will be able to practice with their own chosen subjects. The emphasize will be based mainly on the
real working experience, or the work-based learning, or some special projects that are useful to the establishments
such as improvement or increase efficiency, or problem solving in the working process in which students can be accomplished within 4 months, etc. Students will be able to learn, gain working experiences, and will have the qualifications
as required by the establishments.
Employment of Disabled Persons
TV Direct Public Company Limited, in association with various leading education institutions, has organized
the cooperative education project which is the education system that emphasizes on actual practice in the establishment systematically. The learning process will be done in the school together with real practice at the actual
establishment and the students will be able to practice with their own chosen subjects. The emphasize will be based
mainly on the real working experience, or the work-based learning, or some special projects that are useful to the
establishments such as improvement or increase efficiency, or problem solving in the working process in which students can be accomplished within 4 months, etc. Students will be able to learn, gain working experiences, and will
have the qualifications as required by the establishments.
24
TV Direct Public Company Limited
Holding company
Sell household equipment and
other
Sell household equipment and
other
Sell household equipment and
other
Sell household equipment and
other
Sell household equipment and
other
ell goods and services through
S
multiple marketing channels
irect Response Television
D
Co., Ltd.
TV Direct Lao Co., Ltd.
TV Direct (Malaysia) Sdn. Bhd.
TVDI Vietnam Co., Ltd.
JML Direct (Thailand) Co., Ltd.
Shop at Home Co., Ltd.
2
3
4
5
6
4
Nature of Business
V Direct Indochina Company
T
Limited
Subsidiaries
1
As of 31 December 2013
Companies in which TVD holds more than 10% of their shares
Thailand
Thailand
Vietnam
Malaysia
Laos
Cambodia
Thailand
Incorporated in
In process of
obtaining the
telephone line
(just set up the Company)
02-347-0033
+84 8 38103366
+84 1257077 888
1-800-18-9229
012-615 0999
856-20 54433551,
54556229
+023 951 999
+23 952 999
02-666-0999
Tel
In process of
obtaining the
fax line (just set
up the Company)
02-347-0098
-
03-2727 5288
856-21 264684
-
02-347-0192
Fax
Common Shares
Common Shares
Common Shares
Common Shares
Common Shares
Common Shares
Common Shares
Type
Baht 12,500,000
Baht 30,000,000
VND 8,923,936,000
MYR 2,500,000
US Dollar 800,000
KHR 1,380,000,000
Baht 90,000,000
Number
Paid-up Capital
25
Financial Highlights
(Unit: million Baht)
Description Audited
Audited
Audited
Consolidated
Consolidated
Consolidated
2011 20122013
Cash and cash equivalents
40.95
47.33
126.45
Accounts receivable- others-net
54.57
139.62
106.46
Inventories - net
333.13
372.65
420.13
Property, plant, and equipment - net 223.07
299.57
353.46
19.62
20.82
34.10
Intangible assets - net
Total Assets
776.43 1,001.701,294.95
Bank overdrafts and short term loans
205.29
255.97
127.06
257.43
295.89
274.93
2.37
6.40
6.99
40.45
57.77
84.90
Total Liabilities
538.08
663.47
552.88
Registered Capital
188.00
188.00
246.75
Paid up capital
159.04
188.00
235.00
from financial institutions
Accounts payable - others
Liabilities under financial lease
Long term loan from financial institutions
Retained earnings
Appropriated – legal reserve
7.37
unappropriated
12.07
16.51
46.3540.026.29
238.35 338.23742.07
Total Shareholders’ Equity
Total Revenues
1,905.99
2,249.27
2,231.25
773.56
980.84
880.86
1,054.47
1,167.73
1,280.35
Interest expenses
11.81
16.94
15.59
Income tax
23.38
27.76
16.20
Net profit
35.67
48.18
36.63
318,080,000
337,544,918
420,810,955
Cost of Sales and Services
Selling and Administrative expenses
Weighted average number of shares at par Baht 0.50
Basic earnings per share (Baht)
26
TV Direct Public Company Limited
0.11
0.150.0979
27
Business Operation for each Product Group
Nature of Each Business Segment
The Company conducts its business on distribution of products and services through the multichannel
marketing. Business operational structure of the Company can be segmented into 5 main channels, such as;
1. TV Marketing: The distribution of products and services through normal free television, satellite television,
and television with cable-TV membership.
2. Direct Marketing: The distribution of products and services through outbound call center, direct response
printing, and E-Commerce, including the call center.
3. Conventional Marketing: The retail distribution of products and services through TV Direct Showcase,
including wholesaling through domestic and foreign customers.
4. Services: This offers contract production services on advertising media and providing advertising
times for customers, marketing activity, and organize concert.
5. Direct Sale: Single level selling Revenues Structure
Revenues structure of the Company and subsidiaries companies during 2011 – 2013 is listed below:
Type of Revenue
by
1. Revenue from
sales and services
1.1 TV Marketing
1.2 Direct Marketing
-Outbound Call Center
- Printed Media
- Website – On-line
- Call Center
- Direct Sale
Total Revenue from
Direct Marketing
1.3Conventional
Marketing
- Retailing through
Direct2U And TV Direct Showcase
- Wholesaling to
domestic and
foreign customers
Total Revenue for
Conventional
Marketing
1.4 Total Services 1*
1.5
2.
2011
Million Baht
2012
%
2013
Million Baht %
Million Baht
%
Company
870.54
45.67
943.30
41.94
874.09
39.17
Company and
Subsidiaries
Company
Company
Company
Company
Company and
Subsidiaries
387.38
20.32
487.75
21.68
478.41
21.44
127.43
32.92
24.23
9.03
580.99
6.69
1.73
1.27
0.47
30.48
121.06
46.93
35.79
8.35
699.88
5.38
2.09
1.59
0.37
31.12
139.61
54.71
23.92
12.15
708.80
6.26
2.45
1.07
0.54
31.77
Company
273.20
14.33
304.21
13.52
306.20
13.72
Company
53.36
2.80
61.38
2.73
69.74
3.13
Company
326.56
17.13
365.59
16.25
375.94
16.85
97.67
5.13
188.92
8.40
193.12
8.66
26.87
1,902.63
1.41
99.82
39.39
2,237.08
1.75
99.46
51.28
2,203.23
2.30
98.75
3.36
0.18
12.24
0.54
28.02
1.26
1,905.99
100.00
2,249.32
100.00
2,231.25
100.00
Company and
Subsidiaries
Company
Other jobs 2*
Total Revenue from
Sales and Services
Other Revenue 3* Company and
Subsidiaries
Total Revenue
Remark:
1*
2*
3*
28
Operated
Services mean offering contract production services on advertising media and providing advertising
times for customers, marketing activity, and organize concert.
Other jobs mean revenue from products distribution that do not distribute through the main distribution
channel.
Other Revenue consists of rent, interest received, and currency exchange profit.
TV Direct Public Company Limited
29
Revenue from Domestic and Foreign Sales and services during 2011 -2013
Revenue From
Sales and Services
Operated
2011
2012
by
Million Baht
Company
Company and
Subsidiaries
1,889.54
13.09
99.31
0.69
2,222.23
14.85
99.34
0.66
2,176.04
27.19
98.77
1.23
Total Revenue from Sales and Services
1,902.63
100.00
2,237.08
100.00
2,203.23
100.00
Domestic
Foreign
%
2013
Million Baht %
Million Baht
%
Details on business operation of each segment are as follows:
1. TV Marketing
(1) Nature of Products and Services
The Company distributes its products and services by using TV marketing in the form of message information
offering products and services directly to consumers through various television systems such as normal
television, satellite television, and cable television. The Company conducts the sourcing of products and services,
producing programs with presentation of products and services by using its own production team to produce
the Company’s advertising media with its own studio for broadcasting through television systems. If customers wish to order products or services, contact can be made through telephone call by ordering
products and services at the inbound call center as specified in the Company’s telephone number. The Company
has arranged for telephone operators to receive orders of more than 1,000 lines per hour. These operators
have been trained to understand all products and services specifications and will be able to give details
information and suggestions on products and services to customers. Moreover, the Company has arranged
for the Voice Response Unit system so that customers who are waiting for the calls or leave text messages
can be responded back by operators, and the Automatic Distribution Calling System, Call Abundance System,
and Call Overflow System.
There are many types of products of more than 2,000 items that being distributed by the Company which
can be separated into 16 categories as;
1. TV Marketing (Cont’d)
(1) Nature of Products and Services (Cont’d)
30
Product category
Product Item
Health Care Products
Ergonomic chair with back support, Seating mat, Back protection pillow,
Pillow, Massage chair, Massage vibrator, Foot massage, Spar Machine,
Glucose level monitor, Blood pressure Monitor, vitamin and food supplement,
food for health, etc.
Beauty Products
Skin care products, Wrinkle reducing products, Acne care products,
Lotion, Cosmetics, Powder, Lipstick, Eye shadows, Perfume, Body cleaning
products, Shampoo, Conditioning cream, Hair colour products, shaver,
Vibrator machine for exercise, Fat reducing fitness machine, Slimming
machine, Foot massage machine, Muscle tightening equipment for
neck, chin, and face, Heel care equipment etc.
Household Products
Portable steam cleaner, Mop, Vacuum cleaner, Floor and carpet cleaner,
Glass cleaner, Duster, Ionizing machine, Multi-purpose tool, Washing
equipment, Washing machine cleaner, Cloth cleaning products, Clothes
hanger, Slip protection device, Food drier, Water pipe cleaner, De-humidifier,
Air cleaner, Battery charger, sewing machine, shoe box, shoe shelf,
shower head, Bathroom accessories, Container bag, Absorbent pad, etc.
Kitchen Products
Electric stove, Vacuum food preservation, Food container, Juice extractor,
Blender, Food grinder, Food steamer, Toaster, Thermo flask, Kettle,
Kitchen knives, pan, Electric plate, Microwave, Food processer, Oven,
Vacuum pot, Vegetable and fruit cleaning equipment, Water purifier, Glass.
Fitness Products
Variety of exercising machines, Exercise equipment for parts, Back exercise
machine, Abdominal exercise machine, Drum bell, Leg exercise machine,
Exercise bike, etc.
Family Care Products
Health supplements products, Lubricating gel, etc.
Automobile Products
Engine performance enhancer, Additive for automatic transmission gear
performance, Fuel additive performance, Car cleaning equipment, Paint
protection products, Measuring gauge and electric air pump, Battery
charger, Air purifier in car, Electric bicycle, Scratch remover pen, Liquid
caulk, Spot light, Vacuum cleaner in car, etc.
TV Direct Public Company Limited
31
1. TV Marketing (Cont’d)
(1) Nature of Products and Services (Cont’d)
Product category
Product Item
Apparel Products
Suitcase, handbag, wrist band, scarves, spectacles, etc.
Spare Parts
Spare parts for variety of products.
Environmental Friendly Products
Pest free, etc.
Collectable Items
Sacred objects, 9 dragons sacred objects, Guan Imm Image, Guan Oo
image, Chinese fortune sailing ship, Gold plated of 12 zodiac signs,
Memory on the gold plate, Animal pictures for good faith, wall clock, etc.
Edutainment Products
Books for children, Non-fiction books, Books on various knowledge,
Story books, Dictionary, Encyclopedic, Blocks sets, Toys for skill improvement.
Entertainment Products
Piano, Music Instruments, VCD players, Game players, etc.
Gadget Products
Easy Dictionary, Flash drive, Loud speakers, headphones, GPS, Mouse,
Keyboard, Camera, Webcam, MP3, MP4 accessories, Notebook cases,
Memory card reader, Mobile phone, Protective equipment for mobile
phone, etc.
Do It Yourself Products
Plier, screw, and screwdriver set, etc.
Life Innovation Products
Table,Swingingchair,Multipurposefoldingtable,Rockingchairs,Compressed
air mattress, etc.
(2) Marketing and Competitive Situations
(2.1)
Marketing Strategies
The Company operates the following marketing strategies in order to compete with other business operators.
1. Selection of quality products and various types of products: The Company has policy to select quality
domestic and foreign products in which customers cannot purchase from normal shops and contain various
types of products offering to customers.
2. Products and services presentation: The Company produces its own advertising media for products
and services presentation by using its own production studio to produce advertising program. Format of the
advertising program will emphasize on the importance of information being clearly presented on products and services. This enables the Company’s products and services to build memorable experience to customers under
the concept of “Entertaining People with Information”.
3. Marketing channel through many television systems is being practiced whether in the form of normal
television channels, satellite television, and cable television, which results in information on products and services
reaching variety of customer groups.
4. Data model has been prepared to study on requirements on various groups of customers so that
presentation on products and services is in accordance with the customers’ life style. The Company analyses
and collects as per the customer’s data base in order to assist in products and services’ presentation to be suitable
and direct to requirement of each customer.
5. Fast delivery service: The Company has the delivery system for direct delivery to customers within
3 – 7 days for customers in Bangkok and its vicinities, and 4 – 14 days for provincial customers. The Company
has delivery system from the distribution centers for country wide coverage.
6. Products’ satisfaction guarantee: The Company guarantees on satisfaction of every purchase. Customer
has the right to return product within 30 days of purchase as the Company agrees on returning product with
refund to customer.
7. Product discount within specific time: During products and services presentation, if customer orders
the products and services within the specific time, discount will be given. The Company offers selling strategy
with discount from ordinary selling price and/or giving other product as premium to customer to attract and motivate
customer into choosing products and services from the Company.
8. Marketing activity (Below-the-Line) on proposing information on products and services to customer:
The Company continuously arranges the marketing activities to promote the products, thus resulting in public relation
information passing through to customers.
32
TV Direct Public Company Limited
33
9. After sales service and good public relation with customer: The Company arranges for its personnel to
contact customer for information after delivery of products and services in order to ask for customer satisfaction.
This will help in building good relationship with customer and creating impression that leads to repeat sales. Moreover,
the Company has service center with personnel who are ready to give information and services for any query
or questions on products and services.
(2.2)
Target Group
At present the Company has customer base of more than 2.6 million cases, which increases about
100,000 cases in every quarter. The target group will be in accordance with type and category of product for customer with modern day lifestyle, with purchasing power in every gender and age group. (2.3) Distribution and Channel of Distribution
The Company uses the distribution channel to offer its products and services through the direct response
television which can be separated into categories as follows:
1. Free TV
The Company offers the products and services through free TV channel 3, 5, 7, and modern
9 by renting the air time for broadcasting. Hence, the Company will rent the air time from these
television channels in the form of products and services presentation, and time renting for advertising
products and services.
On distribution of products and services through the free TV, if customer requires to order products
or services it can be done by ordering to the inbound call center as in specified telephone number.
The Company has operators ready to receive orders of more than 150 lines and these operators
are trained to understand products and services and can give details information and suggestions
on products and services to customers. Moreover, the Company has the Voice Response Unit
so waiting call from customers or messages can be contacted back which will efficiently help in product
ordering management.
2. Satellite and Cable Television
Apart from the normal free TV, the Company also presents its products and services through
the satellite and cable television with details below:
(a) Products and services through satellite television
The Company offers products and services through the satellite television in the form of
cooperation with various programs with more than 50 channels such as Nation, Voice TV, RS, Grammy,
Spring News, MV TV, IPM, etc. Moreover, the Company also has its very own television channel to
present the ‘Home Shopping” for 24 hours, i.e.
No
Channel
Type of Reception
1.
Shopping Network
- True Vision channel 13
- KU – Band PSI OK channel 12
- Nationwide Cable
Audience Base
Unit: Million Household
2.0
2.
Shop at home
- PSI Disc, C-Band, channel 18
- KU Band system channel 18, ThaiCom.
- DTV Disc channel 18
- BIG 4 channel 10, ThaiCom.
- CTH channel 31
- GMMZ channel 215
- IPM Disc channel 11,NSS6 satellite
- Domestic Cable TV Nationwide
- PSI Disc, C-Band, channel 93, ThaiCom.
3.
Shop Thailand
- Big 4 channel 170
- GMMZ channel 270
10
10
Variety channel 24 hours
4.
Beauty TV
- PSI Disc channel 23, C-Band
10
5.
Health and Family
- PSI Disc channel 33, C-Band
10
34
TV Direct Public Company Limited
35
Moreover, the Company encourages Thai people in creating and inventing new product
by acting as supporter in producing the program Billionaire Inventor” to be broadcasted through satellite
television of the Workpoint TV.
(b) Offering products and services through cable TV
The Company offers products and services through cable TV with True Visions channel 13 on
“Shopping Network” for 24 hours daily. The contract has been signed on products and services
distribution through this channel with Cineplex Co., Ltd. The Company produces the products and
services introduction program on airing with True Visions channel13 in order to offer products to
True Visions members.
On products and services offering through the satellite and cable television, interested customers
are able to contact the inbound call center as specified by the Company. The Company has ready
personnel to accept the purchasing orders of more than 150 lines, and these personnel have
been trained to understand products and services, and are able to give details and suggestions
concerning products and services to customers. Moreover, the Company has the Voice Response
Unit so waiting call from customers or messages can be contacted back. (2.4)
Overall Industry
From Data collection of TV Direct Public Company Limited, total market value of TV marketing business
in 2013 was about Baht 5,000 million. Factor that helped in supporting the expansion of TV marketing business
was the expansion in television media in presentation of products and services to consumers using satellite and
cable television. Presentation of products and services through this media could effectively and efficiently presents
information directly to the target group.
At present there are 6 important operators who conduct TV marketing business in Thailand and increasing
number of potential operators are joining in the business. Important operators are TV Direct Public Company Limited,
Tiger Shopping, Smart Shop, TV Mall, CJO Shopping, and other foreign companies that operate home shopping
business that start to operate direct marketing business in Thailand such as TV Mall, CJO Shopping, and
True GS Co., Ltd. which results in increasing competitive trend for direct marketing business.
(2.5)
Competitive Situation
TV marketing business is highly competitive in using channels of various television systems in offering
products and services, and sourcing of products and services for distribution. Hence, competitors in the industry
can be separated into different groups as follows:
1. Main operators in TV marketing business group in Thailand that distribute products and services
through normal free TV, satellite and cable television. Important operators in this group are TV Direct Public Company
Limited, and Tiger Shopping.
2. Foreign main operators in TV marketing business group coming to operate TV marketing in Thailand in
which important operators are TV Mall, CLO Shopping, True GS Co., Ltd.
3. Operators who own products and services and offering products and services through TV marketing.
There are many operators in this category.
Consideration on competitive situations for the above operators indicates their different strong
points which points to the different positioning on products and services. However, the Company has policy to
sustain the higher competition in TV business by increasing distribution channel for products and services
through more television channels, and also increasing investment in supporting technology for business
operations of the Company such as telephone, electricity and computer system, etc. The Company has customer
base that amounts to more than 1.8 million customers, thus sourcing of computer program for storage and
data processing as contact points for customers’ relation and products and services are very essential. The Company
also realizes the importance in producing advertising media for products and services introduction by having own
studio for producing advertising program. Moreover, the Company realizes the importance of inventory management,
has developed fast product delivery to customers, and has confident in its readiness and ability to sustain business
competition that has an increasing trend in future.
(3) Product Delivery
The Company has product delivery system for product delivery to customer as follows:
(1) The Company delivers products from warehouse to the main delivery centers or various retail shops
by using delivery trucks of more than 24 trucks at present.
(2) The Company hires other delivery companies to deliver products to customers while the Company has
the direct product delivery to customers within 3-7 days for customer in Bangkok and its vicinities and within
4-14 days for provincial customers. On small products, the Company may deliver product through the Thai Post Office
Co., Ltd., in which the customer has to pay for delivery cost.
36
TV Direct Public Company Limited
37
2. Direct Marketing (1) Products and services
The Company distributes its products and services using direct marketing through the inbound and
outbound center, direct printing, and E-Commerce, including the Call Center Service: CCS.
There are more than 2,000 products for distributions with details on type of products are shown in the
TV marketing. (2) Marketing and Competitive Situations
(2.1) Marketing Strategies
In order to be able to compete with other operators, the Company has to conduct the following marketing
strategies.
1. Selection of quality products and various types of products: The Company has policy to select quality
domestic and foreign products in which customers cannot purchase from normal shops and contain various
types of products offering to customers. 2. Products and services presentation: The Company realizes on the importance of information being clearly
presented on products and services. This enables the Company’s products and services to build memorable experience
to customers under the concept of “Entertaining People with Information”.
3. Data model has been prepared to study on requirements on various groups of customers so that presentation
on products and services is in accordance with the customers’ life style. The Company analyses and collects
as per the customer’s data base in order to assist in products and services’ presentation to be suitable and
direct to requirement of each customer.
4. Fast delivery service: The Company has the delivery system for direct delivery to customers within
3 – 7 days for customers in Bangkok and its vicinities, and 4 – 14 days for provincial customers. The Company
has delivery system from the distribution centers for country wide coverage.
5. Products’ satisfaction guarantee: The Company guarantees on satisfaction of every purchase. Customer
has the right to return product within 30 days of purchase as the Company agrees on returning product with
refund to customer.
6. After sales service and good public relation with customer: The Company arranges for its personnel
to contact customer for information after delivery of products and services in order to ask for customer satisfaction.
This will help in building good relationship with customer and creating impression that leads to repeat sales. (2.2) Target Group
This contains general type of customers who have trendy life style and purchasing power, all gender,
and all age groups.
(2.3) Distribution and Distribution Channels
The Company operates the Multi-Channel Marketing in order to distribute products and services as follows:
1. Outbound Call Center
The Company offers its products and services through the outbound call center using more than
700 personnel to take care and make products introduction through the telephone lines, and operate at the
call center every day from 9.00 – 18.00. Customers will be contacted from the data base list prepared by the
Company in which personnel will propose products and services at the same time. These personnel have
been trained to understand products and services, and are able to give details and suggestions concerning
products and services to customers. If customer wishes to purchase products and services, these personnel
will be ready to be informed on requirement.
2. Direct Response Printing
The Company offers its products and services through direct response printing as follows:
(a) Catalogue: The Company prints 4 colour catalogues which have been printed every 2 month
at about 80,000 – 100,000 catalogues. These catalogues present the Companys products and services in variety
of more than 280 items under different brands, and have been delivered to customers as per the selected
customers’ base data to inform on products and services.
(b) Leaflet, brochure, and direct mail are used as products and services presentation, and various
occasional promotions which are used as tools in sales promotion and public relation with customers.
Customer can order products through these direct response printings by telephone to the inbound
call center at specified number by the Company. The Company has ready personnel to accept the purchasing
orders of more than 14 lines, and these personnel have been trained to understand products and services, and
are able to give details and suggestions concerning products and services to customers. The Company has
the Voice Response Unit so waiting call from customers or messages can be contacted back. Moreover, the
Company has made arrangement on receiving purchasing order for products and services through the facsimile
system in order to serve customers who prefer through the facsimile machine.
38
TV Direct Public Company Limited
39
3.E-Commerce
The Company offers products purchasing through on line system through various websites as follows: The Company website on www.tvdirect.tv has been operated since January 2010 and most customers
are from retailing group which is in the general retail customers. Customers can register and order products according
to various categories as indicated in the website. Moreover, the Company has information to communicate with
customers through the on-line system in order to present information on products and services, and various
promotions and also build good relationship with customers. Additionally, the social media is being used to
communicate and give useful information to customers.
Moreover, the Company also presents its products and services through other websites such as www.tarad.com,
www.ensogo.com, www.lazada.co.th www.xetamall.com www.wowme.com etc. Product distribution through the E-Commerce system has convenient steps on ordering and payment
can be made through credit card or bank transfer.
4. Call Center Service
The call center service operates its function to general customers who want to offer products and
services. The Company also offers variety of services that cover the supervision of personnel to perform duties
as stated with customers, supporting and promoting sales activities that concern the call center such as marketing
survey, and data processing, and also finding television advertising period for customers in accordance with
customers’ public relation plan on a timely basis.
(2.4) Overall Industry
From data collection by the TV Direct Public Company Limited, total market of direct marketing business
in various forms is as below:
1. Distribution of products, services, and insurance through the outbound call center in
2013 was approximately at Baht 9,000 million. Factor that assisted in expansion for products and services
business through the outbound call center was the expansion in basic telephone and mobile phone system.
Hence, presentation on products and services through the outbound call center could directly and efficiently
reach the specific target groups.
At present, there are about 150 operators who operate domestic outbound call center on distribution
of products and services, more potential operators are coming into the business. Important operators are various
life insurance and insurance companies, TV Direct Public Company Limited, Property Technology Co., Ltd.,
which results in increasing competitive trend for outbound call center business. 2. Products and services presentation for direct response printing in 2013 amounted
approximately to Baht 4,500 million. Factor that supported in the expansion of products and services distribution
through the direct response printing represents the changing lifestyle and consumer behavior of consumers
who wanted to see and test product before buying decision. This corresponded with convenient product
selection and more channel of payment. Presentation on information of the products and services to consumers
through direct response printing could directly and efficiently reach the specific target groups. At present, there are about 30 operators who operate the direct response distribution of products
and services business and more potential operators are coming into the business. Important operators are
7 – Catalog, HIS & HER, Trendy Day, TV Direct Public Company Limited, which results in increasing competitive
trend for direct response printing business. 3. Products and services presentation for E-Commerce in 2013 amounted to approximately
Baht 33,750 million. Factor that supported in the expansion of products and services distribution through direct
response printing was the expansion of internet and social media by presenting products and services to
consumers on-line through websites which can directly and efficiently reach the specific target groups.
At present, there are about 500,000 operators offering products and services through websites
in Thailand, and more potential operators are coming into the business. Important operators are; Weloveshopping.com
by True Corporation, Tarad.com, shopping.co.th, Pantipmarket.com, Tohome.com, Officemate.co.th, Ensogo.com,
Mods.co.th (The Mall Group), and Central.co.th (Central Group), resulting in increasing trend for business.
4.
Call center service in 2013 amounted to approximately Baht 6,000 million. Factors that supported
in the expansion of the call center service was the more efficient in cost management that created hiring of
external operators including hiring of other call center service, and network expansion of the basic telephone
and mobile phone. The expansion of satellite television by presenting products and services to consumers
through the call center was directly and efficiently presenting products and services to reach the specific
target groups. At present, there are about 60 operators who operate the call center service on distributio
of products and services business and more potential operators are coming into the business. Important operators
are True Touch Co., Ltd., MOCAP Co., Ltd., and “One to One Contacts Co., Ltd.,” which results in increasing competitive
trend for the call center service business.
40
TV Direct Public Company Limited
41
(2.5) Competitive Situation
Direct marketing is highly competitive on distribution of products and services, and also the sourcing of products
and services as well. Competitors in the industry can be separated into groups as follows:
1. Main operator group in the direct marketing business that distribute products and services through
various channels such as direct mail, mail order, outbound call center, and on-line system through the websites.
Important operators in this group are the Property Technology Co., Ltd., and CP All co., Ltd., which operates
7-catalog.
2. Main operator group in the distribution of products and services through retail shops, or shopping
center, or department store, and later on expand business into the direct marketing. Important distribution
channels are direct mail, mail order, catalogue, on-line system through the websites with important operators
such as Central and The Mall.
3. Operators who own the products and services, and in cooperation with credit card operators,
present their products and services through direct mail, mail order, catalogue. There are many operators
in this group. Consideration on competitive situations for the above operators indicates their different strong
points which point to the different positioning on products and services. However, the Company has policy to sustain
the higher competition in direct marketing business by increasing distribution channels for products and services,
and also increasing investment in supporting technology for business operations of the Company such as
telephone, electricity and computer system, etc. The Company has customer base that amounts to more
than 1.8 million customers, thus sourcing of computer program for storage and data processing as contact
points for customers’ relation and products and services are very essential. The Company also realizes the
importance in producing advertising media for products and services introduction by having own studio for
producing advertising program. Moreover, the Company realizes the importance of inventory management, has
developed fast product delivery to customers, and has confident in its readiness and ability to sustain business
competition that has an increasing trend in future.
(3) Product Delivery
The Company has product delivery system for product delivery to customer as follows:
1. The Company delivers products from warehouses to the main delivery centers or various retail shops
by using delivery trucks of more than 13 trucks at present.
2. The Company hires other delivery companies to deliver products to customers while the Company has
the direct product delivery to customer within 3-7 days for customer in Bangkok and its vicinities and within
4-14 days for provincial customer. On small products, the Company may use to deliver product through the
Thai Post Office Co., Ltd., in which the customer has to pay for delivery cost.
42
TV Direct Public Company Limited
43
3. Conventional Marketing
(1) Products and services
The Company distributes products and services through retail shops of “TV Direct Showcase”, including
wholesale distribution to domestic and foreign customers.
There are over 1,500 product items for distribution with details as per catalogue shown in the TV marketing section.
(2) Marketing and Competitive situations.
(2.1) Marketing Strategy
In order to compete with other business operators, the Company’s marketing strategies are stated below.
1. Select quality and variety of products. The Company policy is to select quality domestic and foreign products,
and products that cannot be purchased from general stores, and including variety of product types on offer to customers.
2. Selection of suitable locations for retail shops, as the Company opens retail shops in communities with
purchasing power, and easy access to service.
3. Recruiting and training of salespersons. 4. Arrangement on marketing activities by introducing information on products and services. The Company
arranges continuous marketing activities to publicise the products which enable customers to acknowledge the
Company products.
(2.2) Customer target groups
Customers’ target group for general marketing business can be separated into 3 groups as follows:
1. Retail customer group that represents general retail customers who purchase products and services from
the Company.
2. Corporate customer group.
3. Local wholesale customers which represent customer group that purchases products from the Company for
resale purposes such as drug stores, general merchandise shops, operators of shopping malls and department
stores, etc.
4. Foreign wholesalers which represent customers who purchase through the Company for resale in other
foreign countries such as customers from Indochina region. (2.3) Sales and distribution channels
The Company uses distribution channels for sales of its products and services as follows:
1. Product sales through the Company’s retail shops
The Company offers retail sales through its “TV Direct Showcase” shops which situate in every region
of the country. The Company’s retail shops will separate the area layout by itemizing the product segment
as per their types with sample of products for tryout such as many types of exercise equipment, etc.
As at December 31, 2013, there are 78 “TV Direct Showcase” retail shops, and 1 “Welness” retail shop
that situate in communities, department stores, and modern trades as per list below.
44
Province
Qty.
Bangkok
19
Location
(1) Head office
(2
Central Plaza -Rama 2 branch
(3) Central Plaza -Rama 3 branch
(4) 4026,4028,4030 Soi Jakawarn cinema,Asoke-Dindaeng
(5) Central Plaza -Pinklao
(6) 296, Panitchakarn Thonburi road, Bangkokyai.
(7) Central Plaza -Ramindra
(8) The Mall -Bangkapi
(9) The Mall -Ngam Wong Wan
(10) The Mall -Ram Kham Haeng
(11) Vongvanij Building -Rama 9 Road
(12) Silom Complex Building –Silom Road
(13) Future Park - Rangsit
(14) Seacon Square
(15) Fashion Island
(16) Supreme Complex -Samsaen
(17) Paradise Park
(18) Seacon -BangKae
(19) Big C -Wongsawang
TV Direct Public Company Limited
45
Province
Nonthaburi
Qty.
4
Location
(1) 26/11 Pracharaj Road, Talard Quan, Muang District, Nonthaburi.
(2) Homeworks Shopping Mall, Ratchapruek
(3) Central Plaza Ratanatibet
(4) Central Plaza Changwattana Pathumthani
1
323, Prachatiput, Thunyaburi District, Pathumthani Nakhonpathom
1
88, Rajwithee Rd., Prapathom Jaydee, Muang District, Nakhonpathom Samutprakan
2
(1) 2014/2 Moo 9, Tayparak Rd., Samrong Nua, Samutprakan (2) Mega Bangna
Samutsakhon
1
1300/93, Ekkachai Rd., Mahachai, Muang District, Samutsakhon Phetchaburi
1
2/1, Subsin Soi 4, Rajwithee Rd., Klong KraSaeng, Muang District, Phetchaburi. Ratburi
2
(1) 178/5-6, Phetkasem Rd., Nar Muang, Muang District, Ratburi
(2) Robinson Department Store, Ratburi
Ayutthaya
1
161/37 Moo 3, Klong Suanplu, Phanakhon Sri Ayutthay. 1
249/289 Moo 5, Tar Rahut, Muang District, Suphanburi 1
35/8, Saeng Chootoe, Muang District, Kanchanaburi 1
152/4, Sawam Wethee Rd., Parknampoe, Muang District, Nakhonsawan 5
(1) 64/16, Bang Prasoi, Muang District, Chonburi
Suphanburi
Kanchanaburi
Nakhonsawan
Chonburi
(2) 212/14-15 Moo 5, Narklue, Bang Lamung District, Chonburi
(3) Tesco Lotus Shopping Center, Ohmmata Nakorn branch
(4) Pacific Park Shopping Center, Sriraja
(5) Welness shop, Pattaya
Province
Chanthaburi
Qty.
Location
1
30/255 Moo 7, Chantra Nimit, Muang District, Chanthaburi
1
65/19, Chanta Udom Rd., Ta Prodoo, Muang District, Rayong
1
205, Sukprayoon Rd., Narmueng, Muang District, Chacengchao
1
184, Phahon Yothin Rd., Park Praew, Muang District, Saraburi
Lopburi
1
136, Narai Maharaj Rd., Talay Chupsorn, Muang District, Lopburi
Kamphaengphet
1
722, 724, Ratchadamnoen 1 Road, Nai Muang, Muang District, Kamphaengphet. Chiangmai
2
(1) 36/3, Huey Kaew Rd., Muang District, Chiangmai
Rayong
Chacengchao
Saraburi
(2) Central Airport Plaza, Chiangmai
Chiangrai
(1) 149/4, Tessabarn Bandoo, Phahon Yothin Rd., Muang District.
2
(2) Central Plaza Shopping Center, Chiangrai Lampang
1
341/7,Chatchai Rd., Suandork, Muang District, Lampang
Phitsanulok
2
(1) 298/14, Barom Trilokkanart 2 Rd., Naimuang, Muang District, Phitsanulok
(2) Central Plaza Shopping Center, Phitsanulok
Nakhonratchasima
(1) 223,225. Mittrapab Rd., Naimuang, Mang District, Nakhonratchasima
2
(2) The Mall Shopping Center, Korat
Khonkaen
(1) 182/133, Srijun Rd., Muang District, Khonkaen
2
(2) Central Plaza Shopping Center, Khonkaen
Udonthani
1
26,room 1-2 Moo 7, Taharn Rd., Mark Kaeng, Muang District, Udonthani
Ubonratchathani
1
190, Upparaj Rd., Naimuang, Muang District, Ubonratchathani
Sakaeo
2
(1) 76/6-7, Suwannasorn Rd., Muang District, Sakaeo
46
(2) 97/238 Suwansorn Rd., Srakaew.
TV Direct Public Company Limited
47
Province
Qty.
Location
Roiet
1
41/1, Puttamanon Soi 1 Rd., Naimuang, Muang District,Roiet
Buriram
1
40/7, Thanee Rd., Niamuang, Muang District, Buriram
Prachuapkirikhan
1
Huahin Market Village Shopping Center
Surat Thani
2
(1) 263/4 – 5, Chonkasem Rd., Talad, Muang District, Surat Thani
(2) Central Plaza Shopping Center, Surat Thani
Nakhon Sri
1
8/16, Pattana Kukwang Rd., Niamuang, Muang District, Nakhon Sri Thammarat
2
(1) 110/1, Wichit Songkram Rd., Talard Nua, Muang District, Phuket
Thammarat
Phuket
(2) Central Festival Shopping Center, Phuket
Songkhla
1
488/5, Phetkasem Rd., Haadyai, Songkhla
Pattani
1
12/56, Jaroen Pradit Rd., Sabarung, Muang District, Pattani
Krabi
1
90/43, Maharaj Rd., Paknam, Muang District, Krabi
Trang
1
Robinson Shopping Center, Trang
Chumphon
1
116/7, Kromluang Chumphon Rd., Tar Taprow, Muang Chumphon District, Chumphon
Phetchabun
1
52/45, Taepa Pattana Rd., Niamuang, Muang District, Phetchabun
Nakhon Phanom
1
357/7, Fueng Nokorn Rd., Nongyard, Muang District, Nakhon Phanom
Nongkhai
1
Big Chieng Shopping Center, Nongkhai
Mukdahan
1
Big C Shopping Center, Mukdahan
Total78
2. Product sales through wholesale channels
2.1 Local wholesaling.
The Company offers sales for local wholesalers to various types of customers as follows:
(a) Department stores and retail modern trade stores such as the Mall Department Store, Big C,
Macro, Tesco Lotus, Robinson Department Stores.
(b) “Category Killer” stores type such as HomeWorks, HomePro, Supersport, SportMall.
(c) Operators of the drug stores, and various companies.
Typical product sales through local wholesalers can be categorized into 2 types. (1) The outright sales:
Customers will purchase products through the Company, and products will be delivered as stated in the purchasing
orders. After delivery, collection will be made from customers with 90 days credit term. (2) Consignment sales:
The Company will deliver products and consign them to customers. Payment will be made to the Company after
products have been sold. Customers with consignment condition are Robinson Department Store, The Mall Department
Store, Supersport, etc.
2.2 Foreign wholesaling.
Foreign wholesaling products are offered to Indo-China’s group of countries i.e. the Lao People’s Democratic
Republic, Kingdom of Cambodia, Malaysia, and Socialist Republic of Vietnam. In countries where the affiliated companies
have invested in the sales and services business through varieties of channels, the Company will distribute all products
to its affiliated companies, which consist of Direct Response Television Co., Ltd., TV Direct Lao Co., Ltd., and TV Direct
(Malaysia) Sdn. Bhd.
(2.4) Overall industry
Total market value of the conventional marketing business, from data collected by TV Direct Public Company Limited,
in the product innovation category amounted to Baht 3,900 million in 2013. Factors that facilitated the direct sales business
expansion were the consumers’ purchasing power, and expansion of shopping malls. At present, there are large numbers
of the conventional marketing business operators in Thailand, and increasing numbers of capable direct sales business
operators, including some important operators such as Boots, Watson, Loft, etc. Hence, it reflects an increasing
competitive trend in the direct sales business.
48
TV Direct Public Company Limited
49
(2.5) Competitive situation
The general marketing business is highly competitive whether in the form of distribution channels for products and
services, and competition in sourcing of products and services. Competitors can be categorized as per industrial
groups below:
1. Fitness equipment products group.
2. Beauty and food supplement group.
3. Kitchen equipment products group.
4. Variety products group.
The Company has considered competitive situations among the above operators as each individual
operator has different strong points which indicate different positioning. However, the Company has policy to compete
with higher competitive situation in the general marketing business by increasing its number of retail shops for
TV Direct Showcase to achieve the economy of scale, and increasing its distribution channels with more retail and
wholesale operators. Moreover, policy on inventory management has been given priority and development on product
delivery to consumer has been speedup. Hence, the Company is confident with its preparation and ability in dealing with
the increasing competitive situation in future.
(3) Product delivery
The Company has the product delivery system as follows:
1. For local transportation to customers, the Company will make direct delivery as:
a. Products will be transported by the Company from its warehouse to the main distribution center or to its
various retail shops by using its own 31 trucks at present.
b. For wholesalers in Bangkok and its vicinity, the Company’s trucks will deliver products within 3 – 7 days,
and for provincial wholesalers the Company will hire transporters to deliver products to customers within
4 – 14 days.
2. Product delivery to foreign customers can be categorized as:
a. Product delivery to customers in Malaysia and the Socialist Republic of Vietnam will be delivered by
ships, and / or trucks.
b. Product delivery to the Lao People’s Democratic Republic, Kingdom of Cambodia will be by trucks
from transport companies with the ex-works conditions. The ex-works states that seller will end its product
delivery commitment as per contract when seller makes its products ready for transportation at the seller’s
own place. Seller is not responsible for transferring products on to the trucks, exporting procedures, expenses
on transporting products from sellers’ warehouses to destinations, and all risks will be with purchasers. Hence,
in this case, all risks and benefits will be transferred to purchasers when the transportation company receives
products from the Company’s warehouse. Then, the shipping processes to these two countries can be summarized as:
- Export sales to the Lao People’s Democratic Republic.
The transport company receives products and transport to Nongkai, after that officer from the customer’s
company will receive products and makes exporting procedures to the Lao People’s Democratic Republic. After receiving
products satisfactorily customer will send e-mail confirmation as a proving export document to the Company. - Export sales to the Kingdom of Cambodia.
The transport company receives products at the company’s warehouse, and after receiving products
satisfactorily, e-mail will be sent to the Company as exporting document. However, since the end of last year,
the bill of lading has been introduced into effect as additional exporting evidence. 4. Service
The Company offers contract production of advertising media, and sourcing on advertising airing time for
the Company’s customers. This is additional service given to some of the Company’s customers who are products
or services’ owners and have contracts with the Company to sell their products and have assigned the Company to
produce and prepare advertising time for their products and services. 50
TV Direct Public Company Limited
51
Business description on contract production of advertising media, and sourcing on advertising airing
time for the Company’s customers: After the Company has purchased the advertising airing time such as program
in television, and satellite and cable television channels, the Company offers to its customers such as the life insurance
company, and other operators, to produce the advertising media and finding the advertising airing time
as well. This service is to utilize from the Company’s own airing time, and from existing production studio team that is producing the Company’s program already.
Moreover, the Company has service on marketing activity arrangement, and organize concert. As the Company
already has marketing activity team for presenting various products on various occasions, marketing activity
arrangement service is offered to customers in order to utilize from the existing team. Additionally, the marketing activity
team will have more experience from variety of services given to various customers apart from working for the
Company. Moreover, the Company had arranged concerts for Thai and foreign artists as follows: In 2006, 2007,
and 2009, the Company organized concerts for Toe Saksit Vejsupaporn, concert in 2008 for Michael Learns to
Rock, concert in 2010 for Keereeboon Concert, and in April 2012 the Company arranged the “Korean Music Wave in
Bangkok, 2012” with collection of about 20 bands of Korean singers. In 2013, the Company arranged the concert
“Super Joint Concert in Thailand 2013”.
5. Direct Sale (1) Products and services
The Company distributes the products as a single level direct sale through its representative under the name
“Sarah Lady”, and starting the business in July 2011. Products distribute through direct sale can be separated
into categories as follows:
Product category
Beauty Products
Skin care products, Wrinkle reducing products, Acne care products, Lotion,
Cosmetics, Powder, Lipstick, Eye shadows, Perfume, Body cleaning products,
Shampoo, Conditioning cream, Hair colour products, shaver, Vibrator machine
for exercise, Fat reducing fitness machine, Slimming machine, Foot massage
machine, Muscle tightening equipment for neck, chin, and face, Heel care equipment. Health
Vitamin, and food supplement, food for health product, etc.
Household Products
Portable steam cleaner, Mop, Vacuum cleaner, Floor and carpet cleaner,
Glass cleaner, Duster, Ionizing machine, Multi-purpose tool, Washing equipment,
Washing machine cleaner, Cloth cleaning products, Clothes hanger, Slip
protection device, Food drier, Water pipe cleaner, De-humidifier, Air cleaner,
Battery charger, sewing machine, shoe box, shoe shelf, shower head, bathroom
accessories, Container bag, absorbent pad, etc. Kitchen Products
Electric stove, Vacuum food preservation, Food container, Juicer extractor,
Blender, Food grinder, Food steamer, Toaster, Thermo flask, Kettle, Kitchen
knives, pan, Electric plate, Microwave, Food processer, Oven, Vacuum pot,
Vegetable and fruit cleaning equipment, Water purifier, Glass.
Product Item
Product category
Product Item
Fitness Products
Variety of exercising machines, Exercise equipment for parts, Back exercise
machine, Abdominal exercise machine, Drum bell, Leg exercise machine, Exercise
bike, etc. Apparel
Suitcase, handbag, wrist band, scarves, spectacles, etc.
(2) Market and Competitive Situation
(2.1) Marketing Strategy
1. Selection of quality products and various types of products: The Company has policy to select quality
domestic and foreign products in which customers cannot purchase from normal shops and contain various
types of products offering to customers. 2. Presentation on information of products through catalog by catalogue suppliers on direct sale business
every 30 days to present to consumers.
3. Building sale representative network of “Sarah Lady” to cover all region of the country in order to present
products information to variety of customers. (2.2) Target Group
Target group of direct sale business from present customer base is about 2.6 million persons, and other
general customers.
(2.3) Distribution and Distribution Channel
The Company’s direct sale represents the single level marketing through representatives of the Company.
The area managers (DSM) who station in each province will recruit independent direct sales called “Sarah
Lady” who present products and services directly to consumers or customers. The Company will prepare
and print products catalogue for the representatives for presentation to customers. Hence, “Sarah Lady” sales
representative’s incomes will be the percentage different between retail sale prices to customers and sale prices
specified by the Company.
52
TV Direct Public Company Limited
53
DSM
Company
DSM
DSM
DSM
Sarah Lady
Sarah Lady
Sarah Lady
Customer
Customer
Customer
AS at December 31, 2013, the Company has “Sarah Lady” sale representatives about 26,273 persons nationwide.
(2.4) Overall Industry
Duration of the direct sale company to last in business is found to be in 2 periods of not more than 5 years,
and between 5 – 10 years, or at the rate of 35.4% and 32.3% respectively. The top 3 products are beauty products,
health care products, and daily products for body respectively. There are about 15.32 million people who are direct
sale operators, or business members, or members who want to purchase.
(2.5) Competitive Situation
Direct sale business is in a highly competitive market in recruitment of sale representatives and train them
reach consumers for products and services presentation, competition in sourcing of products and services for
sale, and budget for advertising and public relation for products and services. At present, there are many direct sale
operators whether from domestic or foreign companies and important operators are: Giffarine Skyline Unity Co., Ltd., Betterway(Thailand) Co., Ltd., Avon Cosmetics ( Thailand ) Limited., Amway Co., Ltd.,Kangzen-Kenko International Co., Ltd.,
which resulting in higher competitive trend for direct sale business.
Consideration on competitive situation for the above operators indicates their different strong points
which points to the different positioning on products and services. However, the Company has policy to sustain the
higher competition in direct marketing business by building network of Sarah Lady to cover all provinces, and utilizing
the present customer base data of the Company about 2.6 million persons, and also sourcing of products for distribution.
The Company is confident to be ready and able to sustain competition which has an increasing trend in future.
(3) Product Delivery
The Company uses the Thai mailing service / internal unit of the Company to deliver products to Sarah Lady
sale representatives. Sarah Lady sale representative in Bangkok and vicinities will receive products within 3 -5 days,
and for Sarah Lady provincial representatives products will be delivered within 4 – 7 days.
3.1 Restrictions on the operations of the Company.
Direct sale business of the Company represents direct sale of products and services to customers and
the Company has registered its direct sale business with Office of the Consumer Protection Board which is in accordance
with the Direct Sales and Direct Marketing Act B.E. 2545. Moreover, the Company has policy to comply with the
Consumer Protection Act B.E.2522, and various rules and regulations of the agencies. Product on the type of food,
cosmetics, medical equipment, and dangerous household equipment has to be given permission from Food and
Drug Administration, and for document and advertising for product presentation, sample must be sent for approval to
the Food and Drug Administration prior to usages.
On product distribution, the Company allows customer the right to return product by guarantee customer’s
satisfaction on purchasing within 30 days after receiving product. However, if customer is not satisfied with the product,
product return, or new replacement, or other product can be replaced within 15 – 30 days after report of dis-satisfaction
such as:
(a) In case payment is by cash or money transferred into account, the Company will make cash refund
within 15 days after receiving product back in complete and good condition.
(b) In case payment is by credit card, the Company will make payment through the credit card in the form
of debit account to customer in the next statement.
Table show amount of products returned in 2011 – 2013
Amount of product returned (Million Baht)
54
TV Direct Public Company Limited
2011 20122013
25.05
19.77
16.46
55
3.2 Dependence on Customer
In 2013, the Company was not dependent on big or individual customer at proportion of more than 30%
of total revenue.
3.3 Product Sourcing
On business operation of the Company, the Company will have to consistently source for new products
for presentation to customers by using its product and marketing unit to source and make contact with domestic
and foreign distributors. Product samples will be requested for consideration before presentation to customer, or
personnel from the product and marketing will travel to source and make selection of product from foreign
manufacturer or distributor i.e. from South Korea, Hong Kong, Taiwan, Japan, etc. Apart from contacting to
manufacturer or distributor, there are cases where manufacturer or distributor makes contact with the Company to
present their products for consideration. Product selection will mainly emphasized on quality more than pricing.
Detail on purchasing of domestic and foreign products during 2011 - 2013
Purchasing Order
2011
Million Baht
2012
%
2013
Million Baht %
Million Baht
%
Domestic Products
358.0647.64314.0637.75311.51
38.68
Foreign Products
393.4852.36517.8062.25493.83
61.32
Total Purchasing Amount
751.54
100.00
831.85
100.00
805.34
100.00
Characteristics of the products can be separated into major types below:
1. House Brand: Products that the Company has the trademark rights in which at present, the Company
owns 3 trademark rights, consisting of;
(a) Fatis – food supplement product
(b) Welness – Fitness equipment product
(c) Nuvite – food supplement product
For this type of product, the Company will contact domestic and foreign manufacturers to produce products
for the Company.
2. Products that have been appointed as agent:
The Company has been appointed from manufacturer or distributor as agent in the specified area. At present,
main products that the Company has been appointed as agent consist of;
(a) Velform Hair Grow and Velform Hair Grow Plus:
The Company has been appointed from Industex S.L. from Spain as sole agent with exclusive right
in Thailand, Laos, and Cambodia through TV marketing channel, home shopping, mail order, and direct response
printing, and E-Commerce. The appointment contract has 12 months duration from contract signing date on December
30, 2010, and this contract can automatically be extended with agreement from both parties.
(b) Bawang Shampoo product:
The Company has been appointed from Hong Kong Bawang International Trading Limited as agent
with the exclusive right in Thailand. The Company has agreement with Hong Kong Bawang International Trading Limited
that Hong Kong Bawang International Trading Limited will not distribute Bawang shampoo product to customer
outside Thailand who has intention to import product into Thailand.
(c) Eagle Eyes:
The Company has been appointed from Sun Tiger Inc. Dba Eagle Eyes Optics as agent with exclusive
right in Thailand, Vietnam, Cambodia, and Laos with duration of 12 months starting from December 2009 to December
2010. The contract can be extended after completion of 12 months under condition on product ordering amount
during the period, and at present this is under contract extension process.
(d) Pest Free – product for rat and cockroach expeller The Company has been appointed from as agent from Pest Free Australia Pty. Limited with exclusive
right in Thailand
(e) Misaki: decorative product
The Company has been appointed as agent from Misaki Sam with exclusive right in Thailand with duration
of 3 years commencing from November 1, 2010 till October 31, 2013.
3. Product purchases from general manufacturer or distributor
4. Consignment product is the product that the Company receives from owners of various products, and
product cost will be paid to owners after products have been sold to customers. These types of products are
the beauty products, kitchen products, household products, or technological products. At present, products
distribution through direct sale channel by Sarah Direct will be consignment products which will greatly eliminate
risk on inventory cost for the Company.
56
TV Direct Public Company Limited
57
Proportional ratio on product sourcing as indicated by the Company’s estimation can be summarized below:
House Brand
25%
Product with own purchasing
35%
Product as agent
25%
Consignment product
15%
Dependence on distributor
In 2013, the Company was not dependent on big or individual distributor at proportion of more than
30% of total revenue.
3.4 Inventory Management
The Company has established the supply chain management department for inventory management in order
to monitor movement of products being distributed. The Company has rented a warehouse for storing goods
at 222 moo 17, Sarmwarr road, Minburi sub-district, Minburi district, Bangkok, which has storing capacity of
4,780 square meters, separating into ordinary storage of 4,450 square meter, and area for air conditioners of
330 square meters. The Company has signed contract with JWD InfoLogistics Co., Ltd., for renting and supervising
the warehouse building, and its contents since August 2009, and has extended the contract twice. Present
contract has duration of 2 years starting from August 1, 2013 until July 31, 2015. Moreover, JWD InfoLogistics Co., Ltd.,
has acquired another warehousing area of 1,675 square meters which situates at Latkabang, Bangkok for renting to
the Company for 1 year. The JWD InfoLogistics Co., Ltd., will service on inventory count, inventory management, and
moving products from the inventory in preparation to load on to the Company’s trucks that arrive at the warehouse.
The Company’s delivery trucks will take these goods to distribution centers as per Company’s order. The JWD
InfoLogistics Co., Ltd., will operate its duty with personnel from the Company who have been sent to work at the
warehouse. Moreover, the Company also has another sub-warehouse at 110/3 moo 6, Tarraeng sub-district,
Bangkhen district, Bangkok.
The Company’s 2 main distribution centers have their duties to deliver products to various retail shops of the
Company and to the Company’s customer i.e. (1) 4026,4028, and 4030, Soi Jakrawarn cinema, Asoke-Dinaeng
road, Dindaeng sub district, Dindaeng district, Bangkok, (2) Ta Praa Distribution Center at 296, Panitchakarn
Thonburi Road, Wat Taphra sub-district, Bangkok Yai district, Bangkok. Apart from these 2 distribution centers, the
35 retail shops of TV Direct Showcase also operate as additional distribution centers.
Risk Factors
Important risk factors for the Company and/or its affiliated companies, including risk management and procedures
on risk preventions are as follows:
1. Stability of computer system for business activities
Company’s business activities depend on important data storage, and data processing of computer system
such as data on customers’ purchasing orders, products delivery to customers, remaining inventory, about
2.0 million customers’ data information, data connection between head office and warehouse, data linkage
between head office with the distribution centers and branches, online products’ sales through website, etc.
In case of computer system’s malfunction from various causes, such as computer programs break down, electrical
system failure, and if problem cannot be solved on time, some negative repercussion may results to the Company’s
business activities. Risk management of the Company
The Company has introduced measures in dealing with computer system’s malfunction as follows:
(1) Development on efficiency of the computer server, and networking system for data back up and
data recovery, including the establishment and management of data center by using DC site, and DR site
(in case of emergency) so that the Company has 2 backup computer systems.
(2) Arrangement for the uninterruptible power supply (UPS) in case of electrical system failure,
the backup electrical supply will last for about 1 hour.
(3) Arrangement on the maintenance time table schedules for the transformer, and switch board
for the main distribution board (MDB), and the load center.
2. Stability of the telephone system for business activities
Company’s business activities depend on the telephone system to communicate with customers using the
inbound call center, and outbound call center. Hence, if telephone system failure occurs from various causes such
as failure on the telephone control system, and telephone lines cannot cope with the incoming calls volume,
this will result in impact against the Company’s business activities.
58
TV Direct Public Company Limited
59
Risk management of the Company The Company realizes the importance of telephone system, and has protection measures for telephone system
failure as follows:
(1) Arrangement for sufficient number of telephone lines to serve for maximum inbound calls of
1,500 calls per hour.
(2) Rental arrangement with True Move Co., Ltd., for the “Call Center Solution” for inbound call center.
Important services receiving from this solution are; arrangement of incoming customer calls and distribution to operators
as the system will select suitable routes for incoming calls, automatic voice mail, showing selected customers’
data on computer screen, maintenance services through the remote maintenance method, suggestion on
problem solving solution, etc. Moreover, the Company also utilizes telephone systems from TOT Public Company
Limited, and the mobile telephone system, if telephone system of one network fails, the Company will be
able to switch to another working network as replacement immediately. (3) Introduce managing system for telephone system to cope with large number of incoming calls.
(4) Arrangement for the battery backup system to be able to operate for 8 hours in case of electrical outage. 3. Copyright infringement on trademark / service mark
The Company distributes its products under the service mark “TV Direct”, and distributes its products
through retail branches under the service mark “TV Direct Showcase”, then; it has the risk on trademark and service
mark infringement as follows:
(1) The Company has registered its service mark “TV Direct”, for the services on combination of variety
of products to facilitate on product selection, with the Department of Intellectual Property. This registration
has duration of 10 years commencing from October 28, 2008 to October 27, 2018, and can be extended in
every 10 years.
(2) The Company has registered the service mark on its retail business with the Department of Intellectual
Property as “TV Direct Showcase” for the combination of variety of products to facilitate on product selection.
This registration has duration of 10 years commencing from September 21, 2010 to September 20, 2020,
and can be extended in every 10 years. (3) The Company has registered the trademark “TV Direct” in the Lao People’s Democratic Republic
for duration of 10 years commencing from December 1, 2009, and registered the trademark “TV Direct” in
the Kingdom of Cambodia for duration of 10 years commencing from May 12, 2010, and also registered the
trademark “TV Direct” in the Republic of the Union of Myanmar on February 10, 2011. At present, the Company is
registering its trademark “TV Direct” in Malaysia and the Socialist Republic of Vietnam.
Moreover, the Company has the policy in closely monitoring on trademark or trade service infringement, and
if that occurs, the Company will pursue with legal case.
4. Maintaining the market share
The Company conducts its products distribution and services through the multichannel marketing as revenue
from the Company and its affiliated companies at 70% of sales and services coming from sales and services
revenue through distribution channels of television and direct marketing. Overall competitive situation in the direct
marketing channel shows higher trend from local and foreign competitors, hence, risk from competition with other
operators in the same business still exists.
Risk management of the Company
From 14 years’ experience in the direct marketing business, the Company and its executives have overall
understanding of the market, and can correctly estimate market demand and service requirement of consumers.
Hence, products and services can then be acquired in correspondence with various groups of consumers with variety
of requirements. At present, the Company has over 2,000 products for distribution including many distribution
channels to present its products and services, whether in the form of; product sales and services through normal
television channels, through satellite television channels, cable television, outbound call center, printed media in
the form of catalogues, direct mail, leaflets, E-commerce, etc. As the Company operates through retail branches i.e.
“TV Direct Showcase”, and also local and foreign wholesale trade, its revenue sources derive from many channels and not
depending only from direct sales. 60
TV Direct Public Company Limited
61
Moreover, technology for supporting the Company’s business operations has been invested such as telephone,
electrical, and computer systems. Computer program for data storage and data processing for customers’ data
of about 2.0 million cases has been procured in order to build customers’ relation and suitable products and services
presentation to customers with maximum efficiency. The Company also realizes the importance on the advertising
media production for products and services introduction by having its own production studio for producing
media program. The Company stresses the importance on inventory management, and has developed its product
delivery to customers within a short period. Hence, the Company is confident with its readiness, and experiences in
business operations, and enough ability to compete which shows an increasing trend in the future.
5. Complying with law and important regulations from the regulatory agencies
Business operations of the Company have to comply with the law and important regulations from the regulatory
agencies such as the Direct Sales and Direct Marketing Act, Consumer Protection Act, etc. Important regulatory
agencies concerning with the Company are the Ministry of Commerce, Ministry of Public Health, Food and
Drug Administration, Office of the Consumer Protection Board, and the National Broadcasting and Telecommunication
Commission, etc. The Company has important risks in complying with law and important regulations from the regulatory
agencies as follows:
5.1 Products and services’ advertising that do not comply with regulations from the regulatory agencies
The Company that introduces advertising and promotions media for products and services during its business
operations encounters prosecution risks from consumers or regulatory agencies if its media’s message on
the products and services are not comply with laws on consumer protection in the section concerning consumer
advertising. Some of the examples are; products and services with false or exaggerated fact, message that creates
misunderstanding on important issue on products and services, using direct or indirect supporting message
to break the law or moral, or national culture, etc. If any of the Company’s advertising has broken or not in accordance
with regulations of the regulatory agencies, it might have impact towards business operations of the Company,
as the Company may be fined, or the Company’s directors may face imprisonment term or fine or both, and this
might reflect negative impact towards business operations of the Company.
Risk management of the Company
The Company realizes this risk, and has the policy to strictly comply with regulations from regulatory agencies
on advertising. Advertising samples will be delivered to the regulatory agencies prior to airing time and the advertising
media production unit which is under the product and marketing unit will be assigned to coordinate with
concerned agencies.
5.2 Changing of law concerning privacy protection policy
The Company has policy in collecting personal information by gathering customers’ information, and presents
its sales of products and services through the Company’s data base. At present, infringement on personal information
occurs by using private information without consent from owners for operators’ own benefits, thus, causing
annoyances or damages to owners. This causes the Government to consider introducing law on privacy
protection. The privacy protection policy act is still under the legislation process as this legislation draft will
control the use of personal information on the business and commercial operations, and must be given consent from
owners prior to usage. Hence, if this legislation comes into effect, the resulting impact may affect the Company operations. Risk management of the Company
The Company is continuously monitoring progress of this legislation, and has the policy to comply with laws,
requirements, and regulations concerning business operations of the Company. Additionally, the Company’s privacy
policy is listed below:
62
(1) All customers will be informed for permission to use their information for future contacts.
(2) The Company has policy on the number of contacts for each customer per month.
(3) If any customers require no response from the Company, the Company will strictly comply with the
customers’ wishes.
TV Direct Public Company Limited
63
Shareholding Structure
and Management
Capital Structure
Company Asset
As at December 31, 2013 the Company had registered capital of Baht 246,750,000 which could be separated
as ordinary shares of Baht 493.5 million at par value of 0.50 Baht per share, and the paid up capital of Baht
234,999,996 which consisted of the ordinary share of 469,999,992 shares at par value of 0.50 Baht per share.
Shareholders
List of the first 10 major shareholders as at December 31, 2013 can be summarized as below:
Name
No. of Shares
%
1. Mr. Lai Chien-Kuo
57,380,074
12.209
2. Ms. Issara Vitayathanakorn
53,750,932
11.436
3. Mr. Phaiboon Maturanont
50,712,867
10.790
4. Mr. Songpol Shanmatkit
40,299,841
8.574
5. USE Electronics Co., Ltd
37,778,113
8.038
6. Mr. Thanabul Maturanont
23,253,027
4.947
7. Mr. Boonchu Wirojwattanakul 11,765,808
2.503
8. Mr. Worapot Tanyasuwankul
10,000,450
2.128
9. Mr. Pathompop Chunpanitkit
7,260,800
1.545
10. Mr.Raywit Tanyasuwankul
7,002,125
1.490
Dividend payment policy
The Company has dividend payment policy of not more than 55% of net profit after tax in the financial statement
and after deduction for various reserves. The dividend payment will be considered from various factors concerning
business operations of the Company such as financial situation, operating result, cash flow, investment plan, and
various necessities in future which has to receive approval from the Company’s Board of Directors and/or shareholders.
The subsidiary companies have dividend payment policy of not more than 55% of net profit after tax in the
financial statement and after deduction for various reserves. The dividend payment will be considered from various
factors concerning business operations of the Company such as financial situation, operating result, cash flow, investment
plan, and various necessities in future which has to receive approval from the Company’s Board of Directors and
or shareholders.
64
TV Direct Public Company Limited
HEAD OF
TV MARKETING
Mr. Pongchai Shanmatkit
DIGITAL TV
SATELLITE TV
INPROGRAM
CALL CENTER
HEAD OF
HOME SHOPPING
Mr. Thanabul Maturanont
MEDIA
TV PRODUCTION
Marketing
CALL CENTER
HEAD OF
DIRECT MARKETING
Acting
Mr. Songpol Shanmatkit
Sales – printed material
Electronic Sales
Direct Sales
Outbound General Port
Marketing
Outbound Special Port
Marketing
Outbound Insurance
Marketing
Wholesaler
Supply Chain Management
Marketing
Brand Management
Product Delivery & Shop
Mr. Sakesun Vipusitwalakul
Display and Merchandising
Product and Marketing
Retail Business
Miss Pratoom Chewnongpho
HEAD OF MARKETING
Miss. Laorsri Maturanont
Internal Auditor
HEAD OF
RETAIL MARKETING
Acting
Mr. Songpol Shanmatkit
C - Office
Customer Service
HEAD OF
OUTBOUND MARKETING
Acting
Mr. Songpol Shanmatkit
Management
Information System
Chief Executive Officer
Mr. Songpol Shanmatkit
erating Officer
Executive Committee
Audit Committee
Human Resource &
General Administration
General Administration
Nomination and
Remuneration Committee
Board of Directors
Organization Structure (as at December 31, 2013)
Management
Office of Director
Accounting
Finance
HEAD OF FINANCE
AND ACCOUNTING
Mr. Sakesun Vipusitwalaku
65
Management Structure
The Company has 4 sets of committees on planning and regulating policies which consist of the Board of
Directors, Audit Committee, Executive Committee, and Nomination and Remuneration Committee with the following
details:
Board of Directors
As at December 31, 2013, The Board of Directors consists of the following 9 qualified persons:
Name
Position
1. Mr. Phongsuree Bunnag
Chairman
2. Mr. Songpol Shanmatkit
Director
3. Mr. Thanabul Maturanont Director
4. Mr.Wirasack Wirojwattanakul Director
5. Dr. Pisut Chalakornkul Director
6. Mr. Chalermpong Mahavanidvong Director
7. Mr. Tada Charukitpaisarn
Independent Director and Chairman of Audit Committee
8. Asst. Prof. Anucha Chintakanond
Independent Director and Audit Committee
9. Mr. Suthep Subsantiwong
Independent Director and Audit Committee
Mr. Wichien Manapongpun as the Company Secretary
Then, various shareholding groups have sent their representatives as the Company’s Directors as follows:
1)
2)
3)
4)
Director who represents shareholders of Shanmatkit group is Mr. Songpol Shanmatkit.
Director who represents shareholders of Maturanont group is Mr. Thanabul Maturanont.
Director who represents shareholders of USE Electronics is Mr.Wirasack Wirojwattanakul. Director who represents shareholders Mr. Lai Chien-Kuo is Mr. Chalermpong Mahavanidvong.
Definition of Independent Directors of the Company
Independent Director means external Director who does not have any executive position or as employee
of the Company, does not hold position of Executive Director or Director with binding signature with the Company,
and is independent from major shareholders, Executive, and related person. Independent Director has duty to protect enefit of all shareholders equally, and protect any conflict of interest that might occur between the Company and related
person by having the following qualifications:
1) Holding shares of not over 0.5% of total shares with voting rights of the Company, subsidiaries,
joint venture companies, or juristic persons that may have conflict of interest, and including shares holding of related
person*
2) Not holding position of Director with joint management** / employee / adviser with monthly payment / person with authorization power in controlling the Company, joint venture companies, subsidiaries of the same category***, or juristic person with may have conflict of interest at present and during 2 years prior to appointment.
3) Not having blood relationship or by registration in the forms of father, mother, spouse, brother sister and child including relationship by marriage of the offspring with executive, major shareholders, person with controlling power, or person who will be nominated as executive or person with authorization power of the Company or subsidiaries.
4) Business relationship with the Company that can be categorized as follows:
a) Type of relationship
• Relationship from professional services
- Relationship type: auditor, other professional services such as lawyer, financial adviser,
property appraiser, etc.
- Important case of non-independent
- auditor – forbidden in all cases
- other professional service: amount over Baht 2 million per year
• Relationship through trade / business (same guideline as per regulation on related transaction
of the stock market)
- Relationship type: covering all type of business such as item with normal transaction,
renting, renter of real estate, item related to asset / service and item in giving or receiving
financial assistant.
- Important case of non-independent: value at over or equal to Baht 20 million, or over
or equal 3% of NTA of the Company depending on which case is lower; consideration on
the value includes any item during 6 months prior to recording the item.
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b)
In case of relationship in a) with the juristic person: person to be considered as non-independent
are such as major shareholder, Director (exclude in the case of Independent / Auditing Committee
member), and Executive or partner of that particular juristic person.
c)
Period that is forbidden on relationship as in a) and b): present and 2 years before appointment date.
d) Exception: In case of necessary and appropriate that would not happen constantly and
continuously: Independent Committee member / Auditing member may have relationship more
than specified points during their membership duration but must be given prior approval from
the Board of Directors, and resolution must be unanimous. Moreover, the Companys Board
of Directors must disclose the relationship of such Director within the offering filling form
in the annual 56-1 form, and also in the annual report 56-2 form. Later on if the Company want
to propose the Independent / Audit Committee member for another term, the Company’s Board
of Directors must disclose the information concerning the relationship in the notice of meeting
of shareholders during the election as well.
5) The appointed Director must not be the Director appointed as representative of the Company’s
Board of Directors, major shareholders, or shareholders with related relationship with major shareholders. 6) Not having any other nature that cannot give independent opinion.
7) Independent Director with qualifications in 1) to 6) may be given assignment from the Board of
Directors in making decisions for business operations of the Company, subsidiaries,, joint venture companies,
subsidiaries of the same level, or juristic persons that may have conflict of interest in the collective decision
In case that the Independent Director hold the position of Independent Director in the Company,
subsidiaries, and subsidiaries of the same level, the Board of Directors has to disclose information on this point,
including remuneration received by the Independent Director in the filling form 56-1, and 56-2 as well.
* ** ***
Related person means person as in section 258 of the Securities and Exchange Act
Director with joint management means Director who holds Executive position, Director who is
responsible as an Executive and Director with binding signatory signature except the binding signature
is done after authorization from the Board of Directors, and as the counter signing with other Directors.
Subsidiaries of the same level mean more than 2 subsidiaries that have the same major company.
Hence, definition of the Company’s Independent Director is more strict than the least definition of the Securities
and Exchange Commission Office (SEC) as SEC specifies qualification of the Independent Director of not holding
shares of not over 1% of all shares with voting rights of the Company, subsidiaries, or related companies, and including
shareholding by related person.
Authorized signatory directors
Mr. Phongsuree Bunnag, Mr. Songpol Shanmatkit, Mr. Thanabul Maturanont are the authorized signatory
Directors that requires 2 of the 3 signatures with the Company’s seal.
Scope of duties and responsibilities of the Company’s Board of Directors
The annual ordinary meeting of shareholders held on April 19, 2011 had the resolution to determine the
scope, duties, and responsibilities of the Company’s Board of Directors as follows:
1. Consideration on proposal, advice, and short term and long term business operations strategy, and
important investment of the Company that the Executive Committee ask for comment and approval.
2. Consideration on proposal of project, and plan on other important matters relating to operations of
the Company that the Executive Committee asks for comment and approval. 3. Consideration on operating budget, annual financial budget, and other budgets other than the annual
budget that the Executive Committee asks for comment and approval. 4. Consideration on selection and appointment of the Executive Committee, Chairman of the Executive
Committee, and the Managing Director / Chief Executive Officer in order to manage and operate business operations
of the Company.
5. Follow up and acknowledge on operating results and supervision on business operations of the
Company from the Executive Committee consistently.
6. Consideration on minutes of the meeting according to the law, including consideration on proposal from
the Executive Committee on the Company’s dividend payment for approval in the shareholders meeting.
7. The Company’s Board of Directors may authorize one or more Director, or other person to act on
their behalf. Then, this authorization of power will not include the authorization, or part of authorization that authorizes
Director or receiver of authorization to approve item that may have conflict of interest, stakeholder conflict, or
may have other types of any beneficial conflict with the Company or its subsidiaries. Exception will be made for
normal business transaction and under general trading conditions as specified by the Board of Directors on the
authority, and/or financial limit. These will be under the regulations and conditions, and procedures as stipulated
in the related transaction and for acquired item by receiving or by distributing of important asset under registered
company under regulations of the Stock Exchange of Thailand, announcement from Office of the Securities and
Exchange Commission, and announcement of the Capital Market Supervisory Board.
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Hence, scope of duties and responsibilities of the Company’s Board of Directors must be under regulations
of laws and regulations of the Company and other related agencies such as the Capital Market Supervisory Board,
Office of the Securities and Exchange Commission, and the Stock Exchange of Thailand. Directors or persons that
may have conflict of interest, stakeholder conflict, or may have any other types of any beneficial conflict with
the Company or its subsidiaries will not have the right to vote on the issue.
Audit Committee
As at December 31, 2013, the Company’s Audit Committee consists of 3 independent members as follows:
Name
Position
Duration in Position ( Year)
Chairman of Audit Committee
2
2. Asst. Prof. Anucha Chintakanond 1
Audit Committee Director
2
3. Mr. Suthep Subsantiwong
Audit Committee Director
2
1. Mr. Tada Charukitpaisarn
Remark: 1: Director with knowledge in accounting and finance, with experience in reviewing on reliability
of financial statement.
Mr. Wichian Manapongpan is the Secretary of the Audit Committee
Scope of duties and responsibilities of the Audit Committee
The 2011 annual ordinary shareholders meeting on April 19, 2011 had the resolution to approve scope of duties and responsibilities of the Audit Committee as follows:
1. Review that the Company’s financial reports are correct and appropriate.
2. Review that the Company internal control and internal audit are suitable, and efficient, and consider
on the independence of internal audit unit as well as consideration on the appointment, transfer, dismissal of the internal auditor head, or any other head that is responsible on internal auditing.
3. Review that the Company complies with laws concerning securities and stock market, regulations
of the Stock Exchange of Thailand, and laws concerning business operations of the Company.
4. Consider, select, and propose to appoint independent person for the Company’s auditor with remuneration,
and include attending meeting with auditor without the present of management at least once a year.
5. Consider on related transaction, or item that may have conflict of interest to be in accordance with
laws and regulations of the stock market in order to make sure that the transaction is reasonable with maximum
benefit to the Company.
6. Prepare the Audit Committee Report for disclosure in the Company’s annual report which has to
be signed by Chairman of the Audit Committee, and consisting with at least the following information:
(a)
(b) Comment on the sufficiency of internal control system of the Company.
(c)
Comment on the correct, complete, and reliable financial statements of the Company.
Comment on complying with laws concerning securities and the stock market, regulations of
the stock market, or laws relating to business operations of the Company.
(d) Comment on the suitability of the auditor.
(e)
Comment on transaction that may have conflict of interest.
(f)
Number of the Audit Committee meeting and including names of each committee members.
(g)
Suggestion or remark from the Audit Committee as a whole on performing duties in accordance
with the charter.
(h)
Other subject that shareholders and other general investors should be informed under the
scope of duties and responsibilities as assigned by the Board of Directors
7. Other operations as deemed necessary from the Board of Directors with consent from the
Audit Committee.
Executive Committee
As at December 31, 2013, the Company’s Board of Directors consists of 5 knowledgeable persons as follows:
Name
70
Position
1. Dr. Pisut Chalakornkul Chairman of Executive Committee
2. Mr. Songpol Shanmatkit
Director
3. Mr. Thanabul Maturanont Director
4. Mr. Wichian Manapongpan Director
5. Mr. Wirasack Wirojwattanakul Director
TV Direct Public Company Limited
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Scope of duties and responsibilities of the Executive Committee
In the Board of Directors meeting no. 4/2554 on April 4, 2011, in which there were 3 Independent Director
and Audit Committee Directors joining in the meeting, to consider the scope of duties and responsibilities of the
Executive Committee as follows:
1. Policy establishment, short and long term business plans, budget, management structure of the
Company, and decision making on important investment project of the Company for proposal to the Board of Directors
for consideration on the approval or agreement decision. 2. Stipulation on rules, working system, and regulations on business operations of the Company to
be in accordance with business strategy, economic situation, and present to the Board of Directors for decision.
3. Responsible on the supervision of normal business operation, and according to business plan
that has been approved by the Board of Directors, and including internal management of the Company.
4. Check and follow up on the operating results of the Company with management team in accordance
with policy and approved business operating plan that has been approved by the Board of Directors constantly.
5. Monitor, check, and consider on adjustment of various units in important department, and alteration in
high level management of the Company.
6. Consider on the stipulation of approval authority only within internal function of important working units
of the Company to present for approval from the Board of Directors.
7. Approve on expenses on various business activities within the budget that has been approved
by the Board of Directors (details as per authorization on financial limit concerning daily operations).
8. Consider on salary adjustment, and the annual employee’s bonus by the Human Resource Department
for consideration and approval to the Board of Directors.
9. Consider proposal from the Human Resource Department on other compensation payment apart
from salary, and performance bonus for consideration and approval to the Board of Directors. 10. Consider the guideline approach to correct damage that happened from investment or as per business
plan of the Company and make presentation for agreement from the Board of Directors.
11. Consider on dividend payment from profit of the Company and present to the Board of Directors
for approval.
12. Any other action as assigned by the Board of Directors.
Hence, authorization on the scope of duties and responsibilities of the Executive Committee must come
under condition of laws, rules and regulations of the Company. This will not include the authorization, or part
of authorization that authorizes the Executive Committee to approve item that may have conflict of interest,
stakeholder conflict, or may have other types of any beneficial conflict with the Company or its subsidiaries. Exception
will be made for normal business transaction and under general trading conditions as specified by the Board of Directors
on the authority, and/or financial limit. These will be under the regulations and conditions, and procedures as stipulated
in the related transaction and for acquired item by receiving or by distributing of important asset under registered
company of the Company and its subsidiaries under regulations of the Capital Market Supervisory Board, Office
of the Securities and Exchange Commission, and the Stock Exchange of Thailand.
Nomination and Remuneration Committee
As at December 31, 2013, the Nomination and Remuneration Committee consists of 3 knowledgeable persons
as bellows:
Name
1. Mr. Phongsuree Bunnag
Position
Chairman
2. Dr. Pisut Chalakornkul
Nomination and Remuneration Director
3. Mr. Songpol Shanmatkit
Nomination and Remuneration Director
The Human Resource Development Director is the Secretary of the Nomination and Remuneration Director. Scope of duties and responsibilities of the Nomination and Remuneration Committee
In the Company’s Board of Directors meeting no.8/2011 in August 11, 2011, there were 2 members i.e. the
Independent and Audit Committee Director attending the meeting. The meeting had considered the scope of duties
and responsibilities of the Nomination and Remuneration as follows:
1. Nomination a) Stipulation on rules and conditions for nomination of the Company’s Director, and high level Executive
of the Company (Deputy / Assistant Chief Operating Officer upward) and proposes to the Board of Directors for approval.
b) Nominate, select, and propose person with suitable qualification for the following positions:
-
Director of the Company
-
Director of the Company to be appointed as Director in Committee
-
Deputy / Assistant Chief Operating Officer upward -
Expert for position as advisor of the Board of Directors
For approval by the Board of Directors of the Company
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c) Oversee that the Committee has its size and members suitable for the scope of work, including
adjustment for suitability with the changing environment. Various Committees have to consist of knowledgeable
persons with suitable abilities and experiences.
d) Propose the remuneration of the Company’s Board of Directors and other sub-Committees to the
Company’s Board of Directors for approval.
2. Remuneration
a) Stipulation on policy of the remuneration and other benefits including remuneration rate and other
benefits to the Company’s Directors and other high level Executive of the Company (Deputy / Assistant Chief Operating
Officer upward). This also includes remuneration for Director, salary, subsidized payment, bonus and other related
beneficial alternative, by having the clear and transparent regulations as proposal to the Company’s Board of Directors
for approval, and this policy has to be delivered to the Stock Exchange of Thailand if requested.
b) Oversee that the Company’s Board of Directors and other high level Executive of the Company (Deputy / Assistant Chief Operating Officer upward) receive suitable remuneration rate with their duties and responsibilities comparing to other related business in similar industry.
c) Stipulate guidelines on performance’s evaluation for Director and high level Executive of the Company
(Deputy / Assistant Chief Operating Officer upward) for consideration on annual remuneration adjustment by
contemplating on their responsibilities, related risks involved, and the importance of the long term value added
shareholders’ equity as their performances as well.
d) Stipulate, and review the policy and structure of the remuneration and employee’s benefits of the
Company to be in correspondence with the direct marketing business practice in similar labor market. e) Consider and make proposal on the annual salary adjustment and bonus payment of employees as
per performance of the Company to the Company’s Board of Directors for approval.
f) Information disclosure on the policy and various compensations by listing on the stipulation / payment
of remuneration with details relating to target and performance as well as suggestion of the Nomination and Remuneration Committee in the Company’s annual report.
g) Any other action as assigned by the Board of Directors. 8.2.5 Executive Committee
As at December 31, 2013, the Company has 5 Executive Committee members as follows:
Name
Position
1. Mr. Songpol Shanmatkit
Chief Executive Officer
2. Mr. Thanabul Maturanont
Head of Home Shopping Business
3. Mr. Pongchai Shanmatkit
Head of DRTV Business
4. Miss Laorsri Maturanont
Head of Marketing
5. Mr. Sakesun Vipusitwalakul
Head of Finance and Accounting
Scope of duties and responsibilities of the Chairman of the Executive Committee
The Company’s Board of Directors meeting no. 4/2011 in April 4, 2011, consists of 3 Independent and Audit
Committee Directors and consideration on the scope and responsibilities of the Executive Committee is as follows:
1. Convey the strategic plan, business plan, and capital management plan, investment and budget that
have received approval from the Company’s Board of Directors to assign for action in the operational level.
2. Control, monitor, follow up, and evaluate results of the business operations of various units as in the Company’s
business plan.
3. Stipulate on regulations on team work among various units of the Company.
4. Regularly prepare the management report of the Committees in order to present to the Executive Directors
for consideration.
5. Review the operational budget, the annual financial budget, and other budget apart from the annual financial
budget (if any) and present to the Executive Committee for approval.
6. Consider proposal and operating plans from various units concerning the important business operations
or on the organization improvement work, approval authority, or various working systems of important units in order
to present to the Executive Committee for approval.
7. Any other action as assigned by the Board of Directors. 74
TV Direct Public Company Limited
75
Hence, authorization on the scope of duties and responsibilities of the Chairman of the Executive Committee
must come under condition of laws, rules and regulations of the Company. This will not include the authorization, or
part of authorization that authorizes the Executive Committee to approve item that may have conflict of interest, stakeholder
conflict, or may have other types of any beneficial conflict with the Company or its subsidiaries. Exception will be made
for normal business transaction and under general trading conditions as specified by the Board of Directors
on the authority, and/or financial limit. These will be under the regulations and conditions, and procedures as stipulated
in the related transaction and for acquired item by receiving or by distributing of important asset under registered
company of the Company and its subsidiaries under regulations of the Capital Market Supervisory Board, Office of
the Securities and Exchange Commission, and the Stock Exchange of Thailand.
Authorization of financial limit on daily business operations
In the Company’s Board of Directors meeting no. 4/2011 in April 4. 2011, the Independent Director and Audit
Committee Director with total of 3 persons attend the meeting to consider the authorization to the Company’s
Executives the authority on daily operations of the Company including authorization of financial limit on daily business
operations. Summarization on important items is as follows:
Executive Committee
Chief Executive Purchasing of
Purchasing of Product
Advertising
Fixed Asset
Inventory
Development
cost
(Baht) (Baht) (Baht)(Baht)
<=10,000,000
> 5,000,000
> 5,000,000
> 5,000,000
<= 200,000
<= 5,000,000
<= 5,000,000
<= 5,000,000
<= 50,000
<= 1,000,000
<= 500,000
<= 1,000,000
(Chief Officer level)
Director
Hence, authorization on the above persons as in the above table will not include authorization to approve any
item for the person or to person that may have conflict, stakeholder conflict, or any other beneficial conflict with the
Company or its subsidiaries as stated in regulations of the Stock Exchange of Thailand. This kind of approval will
have to be presented to the Board of Directors meeting and/or at the shareholders meeting for consideration and
approval as in the Company’s regulations or as specified by related laws.
Nomination of Director and Executive
The Company has started the appointment of Nomination and Remuneration Committee in the Company’s
Board of Directors meeting no. 7/2011 in May 20, 2011. However, the present Directors have been appointed by
the shareholders’ meeting by considering from their knowledge, capabilities, and experiences relating to the business,
and must be the qualified person that have not been forbidden by the Public Company Act B.E. 2535, and announcement
from the Securities and Exchange Commission Office, and other related laws. Regulations for the appointment
of the Company’s Director in the shareholders’ meeting are as follows:
The Company’s Board of Directors consists of at least 5 Directors and with not less than half of Directors
must reside in Thailand. The shareholders’ meeting will select the Directors in accordance with regulations and following
procedures:
(1) Shareholder has number of vote in correspondence with the number of own share.
(2) Each shareholder shall vote for a single or any number of Directors. In case of election of more than
one Director, equal vote must be given to all Directors.
(3) Persons who receive highest votes in sequence shall be elected as Directors equaling to the required
Directors. In case that the last two persons have same number of votes which are surplus to requirement
for that election, the Chairman shall cast the deciding vote. In every annual ordinary shareholder’s meeting, 1/3 of Directors has to vacate their positions. If the 1/3 number
of Directors are not exactly divided, the nearest number shall be selected.
For Directors who shall vacate their positions in the 1st or 2nd year after the Company’s registration date, drawing
of lots shall decide the outcome, while Directors with more years in the positions, the longest serving Directors shall
vacate their positions. Directors who vacate their positions shall be eligible for re-election.
Except vacating position of Director at the end of term, Director may vacate the position, in case of;
(1)Death
(2)Resignation
(3) Lack qualification or forbidden by law concerning the Public Limited Companies Act, and/or
laws on securities and stock exchange market.
(4) The shareholders’ meeting has resolution for the resignation
(5) Resignation as per court order
Nomination of the Audit Committee
On the nomination of the Audit Committee, the Audit Committee must have Independent Director of at least
one third of all members, and not less than 3 persons with at least one Audit Committee member must have accounting
and financial knowledge. The Audit Committee will have the following qualifications:
1. Owning shares of not over 1% of total shares with the right to vote of the Company, the main company,
subsidiary companies, joint venture company, major shareholder, or person with controlling authority of the Company
which includes shareholding of person related to that specific Independent Director.
76
TV Direct Public Company Limited
77
2. Have never been or have been Director that participates in the management of business, employee, worker,
advisor with permanent salary, or person with controlling authority of the Company, the main company, subsidiary
companies, joint venture company, major shareholder, or person with controlling authority of the Company at the present
time or during 2 year before being elected.
3. Must not be person with relationship through blood, or by legal registration in the form of father, mother,
spouse, brother and sister, and offspring which includes marriage partner of offspring, Executive, major shareholder,
person with authority, or person who has been offered as Executive or controlling authority in the Company or its subsidiaries.
4. Never have or had business relationship with the Company, the main company, subsidiary companies, joint
venture company, major shareholder, or person with controlling authority of the Company in the characteristic that
may interfere with own independent judgment. This also includes person has never been or has been some doubtful
shareholder, or person with controlling authority of the Company, the main company, subsidiary companies, joint venture
company, major shareholder, or person with controlling authority of the Company at the present time or during 2 year
before being elected.
5. Never have or had been auditor of the Company, the main company, subsidiary companies, joint venture
company, major shareholder, or person with controlling authority of the Company and had never been doubtful shareholder, and the controlling authority or partnership of the auditing office that employs the auditor of the Company,
the main company, subsidiary companies, joint venture company, major shareholder, or person with controlling authority
of the Company at the present time or during 2 year before being elected.
6. Never have or had been provider of any professional services including services on legal advice, or financial
advisor who receives more than Baht 2 million of services fee from the Company, the main company, subsidiary companies,
joint venture company, major shareholder, or person with controlling authority of the Company and has never been
doubtful shareholder, or person with controlling authority or partnership in the professional services at present or during
2 years before being elected.
7. Person who has never been Director and has been appointed as representative of the Company’s Director,
major shareholder, or shareholder who is related with major shareholder of the Company.
8. Person who does not operates similar business and competes with the Company’s business or its subsidiaries,
or has been in doubtful partnership in the partnership company, or Director who participates in business operations,
employee, officer, advisor with fixed salary, or holding more than 1% of all shares that have the right to vote in other
company that operates similar business and compete with the Company and its subsidiaries. 9. Person with other characteristic behavior who may not be able to give independent suggestion on business
operations of the Company.
Remuneration for Director and Executive
Financial remuneration
In the annual ordinary shareholders’ meeting of 2013, in March 29, 2013, the meeting resolution had approved
remunerations for the Company’s Board of Directors, and other Committee as follows:
(1) Meeting Allowance
BOARD
Chairman
Meeting Allowance (Baht)
Director
Independent Director
Board of Directors
20,000 10,000
No payment
Audit Committee
20,000 10,000
No payment
Executive Committee
20,000 10,000 No payment
Nomination and Remuneration
20,000 10,000 No payment
Committee
(2) Directors’ Remuneration
The Company will pay Directors’ remuneration at the rate of 10% of dividend payment but not
over Baht 2.4 million.
Remuneration for the Company’s Board of Directors
In 2013 the Company paid remunerations to the Board of Directors as follows:
Name
Number of Meeting / Total Meeting
2013
Total Remuneration
(Baht)
2013
1. Mr. Phongsuree Bunnag
13/13 683,529
2. Mr. Songpol Shanmatkit
13/13
564,706
3. Mr. Thanabul Maturanont
13/13
282,353
4. Mr. Wirasack Wirojwattanakul
12/13
261,176
5. Dr. Pisut Chalakornkul 13/13
271,176
6. Mr. Chalermpong Mahavanidvong
12/13 261,176
7. Mr. Tada Charukitpaisarn
13/13 271,176
8. Asst. Prof. Anucha Chintakanond
13/13
412,353
9. Mr. Suthep Subsantiwong
9/12 Total
Remark: Remuneration includes meeting allowance and Director’s remuneration.
78
TV Direct Public Company Limited
90,000
3,097,647
79
Remuneration for the Audit Committee
In 2013, the Company had paid remunerations to the Audit Committee as follows:
Name
Number of Meeting / Total Meeting
2013
Total Remuneration
(Baht)
2013
1. Mr. Tada Charukitpaisarn
5/5
90,000
2. Asst. Prof. Anucha Chintakanond
5/5
60,000
3. Mr. Suthep Subsantiwong
5/5
50,000
Total200,000
Remuneration for the Executive Committee
In 2013 the Company had pain remuneration to the Executive Committee as follows:
Name
Number of Meeting / Total Meeting
2013
Total Remuneration
(Baht)
2013
1. Dr. Pisut Chalakornkul
12/12
240,000
2. Mr.Songpol Shanmatkit
12/12
-
3. Mr.Thanabul Maturanont
12/12
-
4. Mr.Wichian Manapongpan
12/12
40,000
5. Mr.Wirasack Wirojwattanakul
11/12
110,111
Total
390,000
Remuneration for the Nomination and Remuneration Committee
In 2013, the Company had paid remunerations to the Nomination and Remuneration Committee as follows:
Name
Number of Meeting / Total Meeting
2013
Total Remuneration
(Baht)
2013
1. Mr. Phongsuree Bunnag
4/4
80,000
2. Dr. Pisut Chalakornkul
4/4
40,000
3. Mr. Songpol Shanmatkit
4/4
-
Total120,000
Remuneration for the Executives
In 2013 the Company had paid remunerations to the Executives as follows:
2013
Remuneration for Executives
Number of Million Baht
person
Salary and Bonus
5
14,225,224
Other remunerations such as transportation, telephone, 5
2,726,296
contribution fund, Social security
Total
Remark: Remuneration for Executives in above table consists of
1. Mr. Songpol Shanmatkit 2. Mr. Thanabul Maturanont
3. Miss Laorsri Maturanont
4. Mr. Pongchai Shanmatkit
5. Mr. Sakesun Wipusitworakul
Other Remuneration
None
80
TV Direct Public Company Limited
516,951,540
81
Employee
Number of employees
As at December 31, 2013 the Company has 1,682 employees by separating into various departments
as follows:
Department
1. Office of Director
Number of person
18
2. T.V. Marketing 135
3. Outbound
705
4. Digital Marketing
13
5. Direct Response Printing
33
6. Retail Marketing Fulfillment 161
7. Retail Marketing - Retailing
127
8. Re-Seller Marketing
12
9. Marketing
32
10.Supply Chain Management
100
11.Finance
10
12.Accounting
23
13.Information technology
15
14.Human Resource Management
23
15.Event Marketing
89
16.Marketing – Brand Management
21
17.Direct Marketing
27
18.Home Shopping
68
19.General Administration
23
20.Customer Service
47
1,682
Employee’s Remuneration
Financial remuneration
In 2013, the Company had paid employees’ remuneration (not including Executives) at Baht 327,258,609 million
in the form of salary, bonus, and other compensations such as commission, overtime, vehicle, telephone
payment, etc.
Other remuneration
None
Employee development plan
The important thing in conducting the business of product distribution, with new product innovation all the
time, by using multichannel marketing is the impressive creation in product usage experience. Then, training has
been arranged for sale representatives in order to present product knowledge and usage of products in each category. owever, in order to develop other employees to develop their abilities to serve the more and increasing sale volume,
the Company has the policy on employees’ development as follows:
1. Training by Executive / employee who have experiences with training on the present products and occasionally
new products in order to develop understanding in various products completely and will be able to give recommendation
correctly to customers with satisfaction.
2. Training course directly by the products’ owner
3. Training by inviting skilled trainer on various topics for employees
4. Arrangement of budget for employee for specialized training.
5. Using the operational system to support on the acquisition management, product management, product delivery,
and supply supporting sale information, including training on the real operations in order to establish efficient operations.
Moreover, in 2012, the Company hired external human resources advisor to help in structural development
and management of human resources system. These were in the subjects of operation on the structural positioning,
characteristic of work position, standard training structure, evaluation system, career path’s growth, including the
related software in order to create development and encouragement in all level of employees.
82
TV Direct Public Company Limited
83
Labor dispute
None
Corporate Governance
The Company realizes that good corporate governance is very important and has supporting role on operations
of the Company which enables it to continuous grow and increases confident towards shareholders, investors,
and all related parties. The Company will emphasize on operating the business in accordance with the good corporate
governance and includes in strictly complying with rules and regulations of the Securities and Exchange Commission
Office, and the Stock Exchange of Thailand. Then, the Company also continuously supports Executives and employee
to realize the importance of good corporate governance, and supplies knowledge to all employees on the good corporate
governance which includes code of ethics of the Company for correct practice. The Company stipulates on guidelines on good corporate governance to be in accordance with good corporate
governance that has been stipulate by the Stock Exchange of Thailand in which 5 important parts are as follows:
1. Shareholders’ Rights
The Company realizes and stresses the importance of equal right to shareholders such as the trading
right, profit sharing right from the Company, shareholders’ meeting right, and the right to present their opinions.
The right on participation in the important decision making subjects of the Company such as; allocation of dividend
payment, appointment or termination of Director, approval on important business transaction that reflects business
direction of the Company, and amendment of the Company’s Memorandum of Association and regulations, etc.
The Company has the policy to proceed with various operations in order to support and facilitate on shareholders’
rights as follows:
(a) The Company will deliver notice of meeting with complimentary information on various agenda, including
right of shareholders on the meeting, and the right to vote for shareholders so that shareholders will have advanced
information in accordance with the related law, or as specified by the Securities and Exchange Commission Office,
and the Stock Exchange of Thailand, and the Company also has policy to disclose the information through the Company’s
website prior to the meeting.
(b) In case that shareholder cannot attend the meeting, the Company opens opportunity to shareholders
to give proxy to Independent Director or any other person as replacement by using one of the proxy forms already
delivered with the notice of meeting.
(c) Prior to the shareholders’ meeting, the Company opens opportunity to shareholders to send in their
comments, suggestion, and questions before the meeting date.
(d) During the meeting, the Company will allocate appropriate time, and opens opportunity to shareholders
for comments, suggestion, and questions in various agenda freely before any resolution. Moreover, in the shareholders’
meeting, the Executive Directors and related persons will join the meeting to present information and will answer questions,
and all questions and suggestions will be recorded in the minute of the meeting for shareholders to review.
2. Equal right to shareholders
The Company has the policy to treat and protect shareholders’ rights equally especially for minority
shareholders such as; open opportunity to minority shareholders to add more agenda before the meeting date,
open opportunity to minority shareholders to propose person for appointment as Director, stipulation for Independent
Director the duty to take care of the minority shareholders as minority shareholders can give suggestions, and comments
to Independent Director who will consider action as appropriated in each case. Additionally, the meeting agenda will
not necessarily be added without prior notice especially in some important agenda that requires time on studying information
prior to decision making, etc.
On protection of insider information, the Company stipulates protection measures on insider trading of person
related to Directors, Executive, employee, and person employed by the Company (including spouse and children
who are minors) who are related to the information, are to disclose inside information to outsider or unrelated person.
Also, they must not seek for their own benefits and for related person by using position and secret information of
the Company such as; Director, Executive, and related person are forbidden to disclose inside information to outsider or
unrelated person. Persons who are relating to inside information are not allowed to engage in the Company’s securities
trading within 1 month before the quarterly financial statements, and the Company’s annual financial statements
are published to the public, and for 24 hours after important information are being disclosed.
The Company stipulates that Director and Executive, including spouse and children who are minors, are to report
on their stock holding of the Company to the Securities and Exchange Commission Office in accordance with
item 59 in the Securities and Exchange Act BE 2535. Moreover, on the buying, selling or transferring securities of
the Company that Director and Executive, including spouse and children who are minors, are to report on
their stock holding of the Company to the Securities and Exchange Commission Office and the Stock Exchange of
Thailand within 3 days after the buying, selling or transferring, and a copy must be sent to the Company as evidence. 3. Role of the Stakeholders
The Company recognizes the important role of all stakeholders whether from the internal stakeholders such as employees and Executives of the Company, or external stakeholders such as customers, competitors, creditors,
Government agencies, communities, and other related organizations. The Company realizes that supports from various
stakeholders will generate ability to compete and results in profit to the Company which is considered as long term
success for the Company.
84
TV Direct Public Company Limited
85
Shareholders:
The Company strives to become good representative of shareholders in operating
the business in order to build maximum satisfaction for shareholders by considering
the long term growth in value with good and continuous returns of the Company.
Customer:
The Company strives to build high customers’ satisfaction and promote relationship
on the same beneficial basis. This can be preceded by bringing good quality
products and services for distribution and ready to quickly execute complaints from
customers. Moreover, the Company is responsible toward customers by distributing
good quality products and services at reasonable prices with complete presentation
on information of products and services with efficient advice on products usages.
Researches on products requirements and customers’ satisfaction have been
done to bring research information on the development of business in accordance
with customers’ requirement.
Trading Partner
:
The Company contemplates on equal business operations and mutual benefit
with the trading partners in accordance with commercial conditions and not
contrary to the law. The Company purchase products and services from trading
partners in accordance with commercial conditions including the contracts
conformation.
Competitor:
The Company supports and promotes the policy of free and fair competition
within the rules of good competition, ethics, and complying with the law.
Creditor:
The Company practices under conditions of the contract and financial obligation
towards creditors strictly, correctly and fully.
Employee:
The Company promotes and develops employees’ abilities to achieve
the most capabilities by arrangement with fair employment, and with good and
safe working environment.
Government Agency :
The Company realizes the important on strictly complying with the law and
regulations of related agencies and has representative as Director in the
Thai Direct Marketing Association. Community:
The Company recognizes the important on environment, safety and responsibility
toward community by making arrangement to take care of environment and
safety with maximum efforts and also campaign on energy saving. Moreover, the
Company has arranged activities together with communities in order to compensate
and help society such as coordination with the Thai Red Cross Society on blood
and stem cells donation under the project “A Drop for Life…..Donation
from hundred hearts”. 4. Information disclosure and transparency
The Company’s Board of Directors realizes and stresses that the importance of information disclosure
must be correct, complete and transparent on the general reports of financial information and general information
under regulations of the Securities and Exchange Commission Office, and the Stock Exchange of Thailand
as well as other information that may have impact on the Company’s stock pricing. The Company will publish
the information to shareholders, investors, and public through various media such as information broadcasting
of the Stock Exchange of Thailand, the Company’s website, newspapers, etc. in order to equally reach the shareholders.
On the investor’s public relation, the Company has assigned the Chief Executive Officer, and the Company’s
Secretary, or person assigned by the Chief Executive Officer to communicate with general people such as shareholders,
investors, analyzers, and related persons.
The Company’s Board of Directors realizes that the Company’s information concerning financial information
and non-financial information have resulted in the decision making of investors and stakeholders of the Company.
The Company has stipulated the Audit Committee to review quality of financial statements and internal control
system, including sufficient information disclosure of important information in the remark of the financial statements,
and report to the Company’s Board of Directors for acknowledgement. Additionally, the Company’s Board of Directors as the policy to disclose information correctly, completely, and truthfully, continuously and on time as per regulations
of the Stock Exchange of Thailand.
5. Responsibilities of the Board of Directors 5.1 Board of Directors’ structure The Company’s Board of Directors consists of knowledgeable members with capabilities and experiences
who contribute to the Company. The Board of Directors has important roles in stipulation on the policy, target, business
plan, and budget as well as the supervision of Executives to operate efficiently and effectively in accordance
with the assigned policy. At present, the Company’s Board of Directors has 9 members consisting of 2 Executive Directors, and
4 non-Executive Directors, with 3 Independent Directors that are one third of total Directors which will suitably
balance on the voting of various topics. Moreover, the Company also appoints 3 additional sub-committees
which are the Audit Committee, Executive Committee, and Nomination and Remuneration Committee and has clearly
specified their scopes of duties and responsibilities. Additionally, the Chairman of the Company’s Board of Directors
is not the same person as the Chief Executive Officer in order to separate their duties on determination on overall policy
and supervision of daily operations.
86
TV Direct Public Company Limited
87
According to the Company’s regulations, in every annual ordinary shareholder’s meeting, 1/3 of Directors
has to vacate their positions. If the 1/3 number of Directors are not exactly divided, the nearest number shall be
selected. The Directors who have to vacate their positions in the 1st or 2nd year, after registration of the Company,
have to draw lots, and for later year Directors with longest serving years have to vacate the positions but Directors
who have to vacate their positions may be re-elected into the new positions.
The Company has Secretary of the Board of Directors who performs duty on the procedures of the
Board of Directors’ meeting, and the shareholders’ meeting. The Company’s Secretary has duty on giving suggestions
on regulations to the Board of Directors must acknowledge and taking care of the Board of Directors’ activity including
coordination on operations as per the Board of Directors’ resolution.
5.2Scope of duties and responsibilities of the Committees.
Committees are responsible towards shareholders for business operations of the Company by stipulating
the policy and business direction of the Company including the monitoring that management is according to
target, and guideline for long tern benefit to shareholders under the stipulation of law and business ethics while
at the same time the Committees have to consider all stakeholders’ benefits.
Corporate Governance Policy
The Company has its corporate governance policy in written format for presentation to the Company’s
Board of Directors meeting for approval. Also, manual on the corporate governance has been published as guidelines
to Directors, Executives, and employees for implementation as the Company’s Board of Directors has arranged
for its review every year.
Business Ethics
The Company has the policy to operate its business in transparent and ethical manners with responsibility
toward stakeholders as well as toward society and environment. The Company has published the code of ethics
booklet so that the Company’s Board of Directors, Executives and employees can use as guidelines for their operations,
and the Company has made announcement and inform all employees for acknowledgement and strictly conform
to the code of ethics.
Conflict of Interest
The Company has policy to carefully consider and terminate conflict of interest with honesty, faithfulness,
with reason and freely under the good ethics in order to give benefit to the Company. Related person on subject for
consideration must inform his conflict of interest to concerned person and will not be allowed for consideration, including
no authority to approve the related subject.
The Company has the policy on related party transaction and item that may have conflict of interest to be in
accordance with the law, as well as regulations of the Securities and Exchange Commission Office, and the Stock
Exchange of Thailand including the disclosure of transaction in the annual report, and in the annual statement
(form 56-1).
Internal Control
The Company realizes the important of good internal control system as this has been arranged in manual
with procedures in writing. It prescribes segregation on responsibility, operational authorization of employee and Executive
on various subjects, asset holding, approving on item, recording of accounting and financial information, separation
on duties of operator, monitoring person, and evaluation, from each other in order to set the balance on checking
and evaluating.
The Company has appointed RPAM Coaching Co., Ltd., as internal auditor and report the result to the Audit
Committee.
5.3Committee meeting
The Company’s Board of Directors has stipulated that the meeting will normally be on every month
and may have extraordinary meeting if necessary. The meeting agenda will be clearly set in advance and information
will be given beforehand so that the Committee will have enough time to study the information except in case of emergency.
Directors have the duty to attend every meeting except in some necessary event, and the Company will make minute
of the meeting and collect documents on minutes of the meeting for reference and review. On consideration of various
subjects, the Chairman who acts as Chairman of the meeting will open opportunity to Directors to have free suggestions.
In some agenda, there may be high level Executive involving in the meeting to give some additional useful information
including the direct acknowledgement on policy for efficient operations.
5.4Remuneration
The Company has stipulated regulations and remuneration for Directors and Executives according to
the knowledge, ability, duty, responsibility, and experience and comparing with the same type of industry. The remuneration
rate must be suitable, to safeguard person with ability to work with the Company for a long term. Moreover, the Company
has made proposal on Directors’ remuneration to the shareholders meeting for its approval by receiving agreement
from the Nomination and Remuneration Committee beforehand, and these will be disclosed as specified by the Securities
and Exchange Commission Office.
88
TV Direct Public Company Limited
89
5.5Directors and Executives’ Development The Company continuously supports the Board of Directors, and Executives to participate in seminar
that is useful to the operations and development. In case of change or resignation in the position of Directors or Executives,
the Company will arrange for useful documents and information to be delivered to the new Directors or Executives including
arrangement for new Directors or Executives to attend the seminar as well.
Supervision on the use of inside information
In order to create transparency and protection on using inside information that has not been disclosed to
the public for self-benefit, including avoiding any scandal on the suitability of inside trading, the Company has the policy
and procedures for protection on using internal information for self-benefit as follows:
- Directors, Executives, and employees of the Company must keep secret and / or internal information
of the Company by not disclosing or searching for own-benefit, or for benefit of other person either directly or indirectly.
This includes buying, selling, transferring, or receiving transfer the Company’s share by using secret and / or internal
information of the Company and / or entering into legal document by using secret and / or internal information of the
Company that may cause any damage to the Company. - Communicate with Directors and Executives in various department on the duty to report their own
shareholding, spouse, children who are minors to the Securities and Exchange Commission Office, and the Stock Exchange
of Thailand as in item 59 and imposed by section 275 of the Securities and Exchange Act BE 2535. - The Company specifies that Directors and Executives have to report their changes in stockholding
to the Securities and Exchange Commission Office as in item 59 of the Securities and Exchange Act BE 2535
and copy of the transaction must be sent to the Company on the same day as report to the Securities and Exchange
Commission Office. - The Company will proceed with circulation letter to Executives that the Executives and related person
who receive internal information that have resulting impact on the changing of share prices will have to stop the Company’s
share trading within 1 month before the quarterly financial statements, and the Company’s annual financial statements
are published to the public, and for 24 hours after important information are being disclosed. Hence, if there is any violation on the above regulations, the Company will proceed with disciplinary action as
appropriated depending on intention and damage caused by that particular action by issuing warning letter, salary
cut / temporary suspension and termination from work.
Internal Control System
The Board of Directors on the adequacy and appropriateness of the Company’s internal control system.
The Company realizes the importance on strengthening of internal control system to be adequate and
appropriate with business operations in order to protect the Company’s property from damage, or for other
improper benefit. The Company has appointed the Quantum Point Consulting Co., Ltd. as the auditor of internal
control of the Company, and reports the auditing results directly to the Audit Committee for its independence on operations.
In the Board of Directors meeting no. 1/2014, on January 23, 2014, with participation from the Audit
Committee, the Board of Directors had evaluated the adequacy of internal control system by questioning information
from management, and answering on questionnaires on adequacy of the internal control by themselves.
It could be summarized that evaluation on 5 parts of internal control system of the Company which were; the organization
and environment, Risk management, the operational control of the management, information systems and data
communications, and tracking system, the Board of Directors commented that the internal control system was
adequate enough.
90
TV Direct Public Company Limited
91
Related Party Transactions
Related party transactions of the TV Direct Public Company Limited or its subsidiaries with other companies
or persons who may have conflict of interest
Details and information of related party transactions of the Company, subsidiary companies, and related companies
are illustrated in Note 37 of the financial statements as at December 31, 2013. The Company’s Audit Committee had
examined the related party transactions and made a remark that those related party transactions are in accordance
with general conditions and normal business operations.
Measures and procedures for the approval of related party transactions
Concerning measures and procedures for the approval of related party transactions, the Company specifies
that Executive or the stakeholder will not be able to participate in the approval of related item. In case that there is a related
party transactions between the Company, or subsidiary companies with person who may have conflict of interest, stakeholder,
or may have conflict of interest in future, the Audit Committee will consider necessity on the transaction, sensibility,
and suitability on pricing of that item. Various conditions will be considered to be in accordance with normal commercial
operations in the market, and price will be compared with other external person. In case that the Audit Committee has
no prior experience in considering related transactions that may occur, the Company will arrange for person with
special skill and experience such as auditor, or independent appraiser, or law firm, etc., that are independent
from the Company and person who may have conflict of interest to give suggestion concerning the related
transactions. Suggestions or recommendations from these persons with special skills will be used for decision
making of the Audit Committee and/or the Company’s Board of Directors and/or shareholders depending on
the case. The Company also complies with rules and regulations of the Stock Exchange of Thailand and/or
announcement of the Office of the Securities and Exchange Commission and/or accounting standard specified by
the Association of Accounting Professions. After that, the Audit Committee will present to the Company’s Board
of Directors for consideration and/or shareholders for consideration and approval as appropriate. The Company will
disclose items on related party transactions in the remark of the financial statements which have been reviewed
by the Company’s auditor.
Policy or Trend on Related Party Transactions in Future
Future related party transactions will have to be reviewed in accordance with measures and procedures for
approval as indicated in the Company’s regulations as stated above. The Company’s Board of Directors and
Audit Committee are the administrators that the Company will proceed with its operations in accordance with
laws on securities and stock market, regulations of the Stock Exchange of Thailand and/or announcement of the
Office of the Securities and Exchange Commission and/or accounting standard specified by the Association of Accounting
Professions concerning related transactions, including performance as stipulated in regulations on information
disclosure on related party transactions, and on acquiring and distributing important assets of the Company or
the subsidiary companies.
Financial Position and Performance
Financial Statement
Summarization of the Audit Report
The financial statements for the year 2012 and 2013 have been audited by Mr. Sudwin Punyawongkhunti,
the registered auditor number 3534 from the Price Waterhouse Cooper ABAS Co., Ltd.
The auditor has reviewed the consolidated financial statements and the Company’s financial statements
for the year 2012 and 2013, and has come to the conclusion that the consolidated financial statements
and the Company’s financial statements that show the financial position of the consolidated financial statements
and the Company’s financial statements as at December 31 2012, and December 31,2013, and the operating results
of consolidated financial statements and the Company’s financial statements, and cash flow of the consolidated
financial statements and the Company’s financial statements at the end of the same fiscal year of the Company
and its subsidiaries, and only of the Company respectively are corrected and appropriated in important information
as in generally accepted accounting standard. Summary of financial position and operating results
TV Direct Public Company Limited and Subsidiaries Consolidated Statement of Financial Position 20122013
M. Baht
%
M. Baht
%
Assets
Current Assets
Cash and cash equivalent
47.33
4.73
126.45
9.77
Account receivable and other - net
139.62
13.94
106.46
8.22
Short term loans to person and other companies
-
-
-
-
Short term loans to associated company
-
-
-
-
and related person
Inventory - net 372.65
37.20
420.13
32.44
Concert during production - net -
-
-
-
Deposit for purchase of products 11.05
1.10
21.42
1.65
Value Added Tax
10.56
1.05
7.91
0.61
Other current assets - net
1.90
0.19
1.25
0.10
Total Current Assets
92
TV Direct Public Company Limited
583.11 58.21683.62 52.79
93
20122013
M. Baht
%
M. Baht
%
Non-Current Assets
Investments in Subsidiaries and Associates -
-
-
-
Investment in securities for sale
27.26
2.72
154.60
11.94
Bank deposits for guarantees
32.26
3.22
29.67
2.29
Property, plant and equipment-net
299.57
29.91
353.46
27.30
Intangible assets - net 20.82
2.08
34.10
2.63
Lease holding rights - net
0.65
0.06
0.13
0.01
Deferred tax assets – net 3.47
0.35
6.40
0.49
Other Non-current Assets
34.56
3.45
32.97
2.55
Total Non-Current Assets
TOTAL ASSETS
418.59 41.59611.33 47.21
1,001.70 100.001,294.95
100.00
Liabilities and Shareholders’ Equity
Current Liabilities
Short term loan from Financial Institution
255.97
25.55
127.06
9.81
Accounts payable and others
295.89
29.54
274.93
21.23
Payment date within one year of
- Long term loan from Financial Institution
- Current portion of liabilities under financial
14.62
1.46
31.46
2.43
6.40
0.64
6.99
0.54
lease - net
Short term loan from related person
-
-
-
-
Accrued expenses
-
-
-
-
Accrued income tax
7.64
0.76
2.84
0.22
Other current liabilities
5.77
0.58
4.90
0.38
Total current liabilities
586.29
58.53
448.18
34.61
Non-Current Liabilities
Long term loan from Financial Institution
57.77
5.77
84.90
6.56
Current portion of liabilities under financial lease
7.80
0.78
2.25
0.17
Obligation for employee benefit
8.91
0.88
14.43
1.11
Other non-current liabilities 2.70
0.27
3.12
0.24
Total Non-current Liabilities
TOTAL LIABILITIES
77.18
7.70104.70
8.08
663.47 66.23552.88 42.69
TV Direct Public Company Limited and Subsidiaries Consolidated Statement of Financial Position (cont.):
20122013
M. Baht
%
M. Baht
%
Shareholders’ Equity
Share Capital
Registered Capital
188.00
-
246.75
-
Issued and Paid up Share Capital 188.00
18.77
235.00
18.15
Premium on share capital
89.06
8.89
465.06
35.91
Premium on land valuation
25.32
2.53
25.32
1.96
Deficit from Under Common Control
(13.69)
(1.37)
(13.69)
(1.06)
Earning from investment in securities for sale
0.05
0.01
0.81
0.06
Deferred gain on hedge accounting.
-
-
-
-
Differences from changing financial statement
1.53
0.15
(0.43)
(0.03)
Retained earnings:
Appropriated – legal reserve
16.51
1.27
Inappropriate
Total shareholders’ equity of parent company
Uncontrolled equity( 4.12)
Total Shareholders’ Equity
Total Liabilities and Shareholders’ Equity
94
TV Direct Public Company Limited
12.06
1.20
40.02
4.00
6.29
342.35
34.18
734.87
(0.41)
7.20
0.56
0.49
56.75
338.23 33.77742.07 57.31
1,001.70 100.001,294.95
100.00
95
TV Direct Public Company Limited and Subsidiaries Consolidated Profit and Loss Statement
20122013
M. Baht
%
M. Baht
Revenue from sales and services
%
2,237.08
99.46
2,203.23
98.74
Cost of sales and services
(980.84)
(43.61)
(880.86)
(39.48)
Gross Profit
1,256.24
55.85
1,322.37
59.27
Selling expenses
(992.59)
(44.13)
(1,063.72)
(47.67)
Administrative expenses
(175.14)
(7.79)
(216.63)
(9.71)
Earnings from operations
88.51
3.93
42.02
1.88
0.04
0.00
8.04
0.36
Other Income
12.19
0.54
19.98
0.90
Other Expenses
(8.96)
(0.40)
(0.33)
(0.01)
Financing cost – interest paid
(16.95)
(0.75)
(15.59)
(0.70)
Share of loss from investment
-
-
-
-
Profit before tax
74.83
3.33
54.12
2.43
Income Tax
(27.76)
(1.23)
(16.20)
(0.73)
Profit for the year
47.07
2.09
37.92
1.70
Net compensation income from warehouse fire
in associated company
Other comprehensive income Differences from changing financial statement
1.06
0.05
(2.05)
(0.09)
Profits from investments available for sale
0.06
0.00
0.95
0.04
Changes in deferred tax liabilities
Profits from investments available for sale.
(0.01)
0.00
(0.19)
(0.01)
Comprehensive Profit for the Year
48.18
2.14
36.63
1.64
Profit Sharing Majority Interest
48.97
41.21
Minority Interest
(1.90)
(3.29)
47.07
37.92
Comprehensive Profit Sharing
Majority Interest
50.01
40.01
Minority Interest
(1.83)
(3.38)
48.18
36.63
TV Direct Public Company Limited and Subsidiaries Consolidated Statement of Cash Flow
Unit : Million Baht
Description
20122013
Cash Flows from Operating Activities
Net profit before tax
74.84
54.12
Adjusting Entries:
Depreciation and amortization 36.06
50.87
Amortization of leasehold.
0.52
0.52
Allowance for doubtful accounts (reversed)
1.67
10.26
Loss on write-off.
4.71
0.48
Estimated recoverable (reversed)
1.02
(0.16)
Allowance for obsolete and slow moving products (reversed)
(2.92)
(2.78)
Allowance for product cost higher than net received value
(0.09)
(0.53)
Loss from products counting
(0.81)
(0.43)
4.48
4.22
-
-
6.26
-
Income from compensation on warehouse fire
(82.00)
-
Loss from disposable products sales from fire
81.79
-
Loss from disposable equipment sales from fire
0.11
-
Loss from disposable sales of consumable materials from fire
0.05
-
Loss on disposal of equipment from theft
0.02
-
-
(0.63)
Loss from obsolete fixed assets and intangible assets
2.70
0.33
Estimation on provision for unused vacation (reversed)
(0.52)
-
Obligation for employee benefits
5.79
6.43
Expenses resulting from the sale of shares to employees
1.39
-
Interest received
(1.50)
(1.36)
Financial costs -interest on loan from financial institution
15.97
14.49
Loss from product demolition Loss from investment in closed subsidiary (reversed)
Loss from investment in subsidiary
Capital gain
-Interest payable under financial lease
0.94
1.10
-Interest paid on loan from person and related company
0.03
-
Profit from operations before changes in operating assets and liabilities
150.52
138.87
96
TV Direct Public Company Limited
97
TV Direct Public Company Limited and Subsidiaries Consolidated Statement of Cash Flow (Cont.):
Unit : Million Baht
Description
20122013
Operating assets decrease (increase)
Trade receivables and other receivables
Remain inventory
Deposit for products
Value added tax
Other current assets
Other non-current assets
(9.13)
23.21
(118.91)
(50.57)
7.23
(10.36)
(2.98)
2.66
0.30
0.65
(2.66)
1.59
Operating liabilities decrease (increase)
Trade payables and other accounts payable
17.55
(18.01)
Deposit on received goods -
-
Accrued expenses -
-
Other current payables
0.61
0.46
Obligation for employee benefits (1.23)
(0.91)
0.31
0.42
40.59
87.98
2.20
1.36
Other non-current liabilities Cash received (payable) from operations
Interest received
Cash paid on financial cost – interest paid
(15.32)
(16.36)
Cash payable for income tax
(32.86)
(24.12)
(5.39)
48.86
Net cash received (spent) on operating activities
Cash flows from investing activities
Deposits on guarantees at financial institution increased(decreased)
(2.53)
2.58
(88.16)
(100.46)
0.38
0.46
(9.55)
(20.03)
Cash received for discount purchase of intangible assets
-
0.22
Cash paid for short term loan to person and other company
-
-
7.04
-
Cash paid for fixed assets
Cash received on selling of fixed assets
Cash paid/received for purchasing of intangible assets
Cash received from short term loan to person and other company
Cash received for short term loan to associated company and related person(6.93)
-
Cash from dividend payment
-
-
Non-controlled stakeholder increased (decreased)
-
14.70
Cash received(paid) from investment in closed down company
-
-
Consolidated Statement of Cash Flow (cont.):
Description
Net cash received(paid) from investment in subsidiaries
Cash paid for investments in securities available for sale
Cash received from sales of securities available for sale
Cash paid for investment in associated company
Net Cash Received (spent) from Investing Activities
20122013
0.96
-
(28.20)
(197.20)
1.00
71.44
-
-
(125.98)
(228.27)
Cash flows from financing activities
Cash received from short term loan from financial institution
1,338.05
719.50
(1,287.37)
(848.41)
(11.18)
-
-
-
Long term loan from financial institution – cash received
31.93
68.07
Long term loan from financial institution – cash paid
(7.47)
(24.09)
Cash payment for loan under financial lease
(3.47)
(7.11)
Cash received from issued shares from subsidiaries
10.09
-
Net cash received from issued shares
120.25
423.00
Cash paid for share offering operation
(3.61)
-
Cash paid on dividend of ordinary shares
(50.53)
(70.36)
Net cash received (paid) in financing activities
136.68
269.59
Differences on adjustment of financial statement
1.06
(2.05)
Net Cash and Cash Equivalent Increased (Decreased)
6.38
79.13
Net Cash and Cash Equivalent as at January 1st 40.95
47.33
Net Cash and Cash Equivalent as at December 31st 47.33126.45
Cash paid for short term loan from financial institution Short term loan from related business increased (decreased)
Short term loan from other person increased (decreased)
98
TV Direct Public Company Limited
99
Summary of Important Financial Ratios
Description
20122013
Liquidity Ratio
Liquidity Ratio
(time)
0.99
1.53
Quick Liquidity Ratio
(time)
0.14
0.46
Cash Flow Liquidity Ratio
(time)
(0.01)
0.09
Account Receivable Turn Over Ratio
(time)
39.98
27.58
Average Collection Period
(day)
9.00
13.05
Inventory Turnover Ratio
(time)
3.05
2.45
Average Product sales Period
(day)
118.18
146.79
Payable Turnover Ratio
(time)
5.48
4.78
Debt Payment Period
(day)
65.66
75.39
Cash Cycle
(day)
61.52
84.45
Profitability Ratio Profit Margin Ratio
(%)
56.16
60.02
Operating Profit Ratio
(%)
3.96
1.91
Profitability Ratio
(%)
(6.09)
116.26
Net Profit Ratio
(%)
2.09
1.70
Return on Equity Ratio
(%)
16.21
7.04
Efficiency Ratio Return on Assets
(%)
5.29
3.30
Return on Fixed Assets
(%)
31.81
27.19
(time)
2.53
1.94
Asset Efficiency Ratio
Financial Policy Ratio Debt to Equity Ratio
(time)
1.94
0.75
Interest Coverage Ratio
(time)
2.79
5.46
Cash Fixed Charge Coverage Ratio
(time)
(0.03)
0.22
(%)
119.81
123.96
Dividend Payment Ratio
Discussion and Analysis on Financial Position and Operating Results
Overall Performance
TV Direct Public Company Limited (or “Company”) had been established in April 21, 1999 and in the beginning
the Company operated the direct marketing business using media communication for direct presentation of products
and services through the Direct Response Television in the free TV system in which consumers could purchase
through the inbound call center. Later on, the Company had expanded the business into the distribution
of products and services through the multichannel marketing. Moreover, the Company also distributed its products
through the retail channel using the TV Direct Showcase, including the wholesale distribution of products to
domestic and foreign customers. This also included contract on producing advertising media and procuring
advertising air-time for customers as supplementary service. Hence, from business expansion into the distribution
of products and services in various marketing channels, the Company’s sales volume had continuously increased.
This had coupled with various marketing strategies that had been in operations in many areas such as; the selection
of quality and variety of products by studying the requirement of various customer’s groups, products and services
presentation that corresponded with customers’ life style, quick products delivery service, satisfaction guarantee
for customers by offering the right to return products within 30 days after receiving, the below-the-line marketing
activities to present products and services information to customers, and the importance of after sale service
and building good relationship with customers. Hence, from the first year operation in business with sales revenue of only Baht 64 million until 2011, the Company and its subsidiaries had revenue from sales and services at
Baht 1,902.63 million, and had increased to Baht 2,237.08 million in 2012, and at Baht 2,203.3 million in
2013 at the growth rates of 17.58% and -1.51% respectively.
In order to be ready for competitions from domestic and foreign competitors in future, the Company had
started to expand into the direct marketing business in Indo-china countries in 2011. The Company had invested
99.99% of shares in the TV Direct Indo-China Co., Ltd., which had investments in other companies and, as at present
the TV Direct Indo-China has investments in its 4 subsidiaries consisting of;
(1) Direct Response Television Co., Ltd., that situated in Cambodia at 100%.
(2) TV Direct Lao Co., Ltd., in Lao at 95%.
(3) TV Direct (Malaysia) Sdn. Bhd., in Malaysia at 88.25%.
(4) TVDI Vietnam Co., Ltd., in Vietnam at 100%
These 4 subsidiary companies operated the direct marketing business. Moreover, in July 2011, the Company had
started the business of one level direct sale which was used to add more marketing channel to other retailing customers.
100
TV Direct Public Company Limited
101
In May 12, 2013, the Company expanded its business by joint investing with a British company,
John Mills Ltd., which operated the “Screen to Screen” distribution type of business with highly popular operations
in Europe and Asian. The J.M.L. Direct (Thailand) Ltd. was setup with the Company holding 51% shares in order to
add an additional sales channel to retail customers.
In November 26, 2013, another company called “Shop At Home Co., Ltd.,” was setup for the purpose of
product distribution through 24 hours television channel with the Company held 99.99% shares. This was to compete
with foreign competitors and the starting of 24 hours television broadcasting technology.
Apart from policy to generate strong revenue growth, the Company also realized the importance of product
sourcing, and on controlling product cost to be at the suitable level. The Company had appointed the supply chain
management in order to follow up on the product movements. The supply chain management had its duties in
the product acquisition plan, management of inventory and cooperated with various units such as sales, marketing,
information technology, accounting, and finance departments, etc., in order to follow up on product movements,
and data on type of products ordered from customers. This information would be used to evaluate product
requirements of customers and on ordering suitable type of products. The Company had planned for the advertising
and public relation for product presentation including plan on various selling methods such as, products’ prices
adjustment to suit the present situation, etc. Hence, from these operations, the Company was able to generate net
profit of Baht 35.34 million, and Baht 47.07 million, and Baht 37.92 million from year 2011 to 2013 respectively.
a) Revenue
The Company and its subsidiaries had total revenues of Baht 1,905.99 million in 2011, Baht 2,249.27 million
in 2012, and Baht 2,231.25 million in 2013, and details on revenue from sales and services including other revenues
could be summarized as follows:
Revenue from Sales and Services The Company and its subsidiaries’ main revenue came from the distribution of products and services
through the multichannel marketing. During 2012 – 2013, revenues from sales and services through the multichannel
marketing of the Company and its subsidiaries can be summarized as follows:
2012 2013
Revenues
from
sales
and
services
M. Baht
%
Growth M. Baht
%
as
per
marketing
channel
rate (%)
Television Marketing
943.30 42.17
Growth
rate (%)
8.36874.09 39.67 (7.34)
Direct Marketing
- Outbound Call Center
487.75
121.06
46.93
35.79
8.35
(1.91)
- Direct Response Printing
21.80
5.41
2.10
1.60
0.37
15.32
- Websites
25.91 (5.00)42.5647.71(7.53)16.58
- Service Call Center
- Direct Sale
Total Direct Marketing
478.41
139.61
54.71
23.92
12.15
(33.17)
21.71
6.34
2.48
1.09
0.55
45.51
699.88
31.29
20.46
708.80
32.17
1.27
304.21
13.60
11.35
306.20
13.90
0.65
Conventional Marketing
- Retailing
- Wholesaling
Total Conventional Marketing
365.59
Services *
188.928.44
93.43
193.128.772.22
Others **
Total Revenue from sales and services
*
**
102
61.38 2.7415.0369.74 3.1713.62
16.34
11.95
375.94
17.06
2.83
39.39 1.76 1.7651.28 2.3330.19
2,237.08
100.00
17.58 2,203.23
100.00
(1.51)
Services mean service contract for producing advertising media and advertising air-time for customers,
concert organizer, or other marketing activities.
Others mean revenues from products selling not through the main channel.
TV Direct Public Company Limited
103
In 2012, the Company and its subsidiaries generated revenues from sales and services at Baht 2,237.08
million, showing an increased amount comparing to Baht 1,902.63 million in 2011 or at growth rate of 17.58%.
Revenues from sales and services were from the 3 main distribution channels which consisted of television
marketing, direct marketing, and conventional marketing that showed growth from previous years as 8.36%,
20.46% and 11.95% respectively. Additionally, the Company and its subsidiaries had revenue from services at
amount of Baht 188.92 million, or growth of 93.43% from previous year from organizing Korean concert in
April 2012 that generated revenue of Baht 58 million, and from service contracts to produce advertising media and
to find the additional advertising air-time for customers. This resulted in renting more airtime of the Company from
other media and the expansion of working studio.
In 2013, the Company and its subsidiaries had revenues from sales and services at Baht 2,203.23 million,
a decreased amount comparing to Baht 2,237.08 million in 2012 at a reduced growth rate of 1.51%, as revenue
through sales and services of TV marketing showed a decreasing growth rate of 7.34%. The main reason
was from business competition from a few large foreign home shopping competitors. The direct marketing and
conventional marketing markets still registered growth from previous year at 1.27% and 2.83% respectively
even though the domestic retail market showed a slowdown trend. Moreover, the Company and its subsidiaries’
revenue from services amounted to Baht 193.122 Million, showing growth rate of 2.22% even though
there was no income from organizing the Korean concert. This was from our stringent measures in collecting revenue
for delivery service to customers as well as producing more advertising media and selling more advertising
time to customers. In 2012, the Company and its subsidiaries had other revenues of Baht 12.24 million, which consisted of profit
from exchange rate of Baht 3.87 million, revenue from insurance claimed of Baht 3.53 million, interest received of
Baht1.50 million and other revenues amounted to Baht 3.29 million such as revenue from insurance claim, rental
revenue, service revenue, etc. The main causes that resulted in an increase in other revenue were from receiving
insurance claim from flooding in 2011, and profit from the exchange rate due to stronger Baht.
In 2013, the Company and its subsidiaries had other revenues of Baht 28.02 million, which consisted of profit
from exchange rate of Baht 3.11 million, revenue from fire insurance compensation in 2012 at net Baht 8.04 million,
interest received at Baht 1.36 million, revenue from compensation from delayed office construction at Baht 1.1 million,
revenue from data base hiring at Baht 10 million, and other revenues at Baht 4.30 million such as renting, and
servicing, etc.
b) Costs and Expenses
The main expenses of the Company and subsidiaries consisted of cost of sales and services, selling expenses,
administrative expenses, interest paid, and share of loss from investments in associated companies.
From 2012 – 2013, the Company and subsidiaries had total expenses amounted to Baht 2,174.48 million, and
Baht 2,177.13 million respectively with the following details:
Cost of Sales and Services and Gross Margin
During 2012 – 2013, the Company and subsidiaries had cost of sales and services amounted to Baht 980.84 million,
and Baht 880.86 million in which ratio of cost of sales and services against revenue from sales and services was
at 43.84 % and 39.98 % respectively, or at the gross profit ratio of 56.16% and 60.02% (for 2012 in case that
revenue and cost on concert organizing in April 7, 2012 was not used in the calculation, the cost of sales ratio
showed 41.34% and the gross profit ratio showed 58.66%). This indicated that the Company and subsidiaries
were able to control the gross profit ratio to be at the continuously high level of 58% - 60%. This was the result
of realizing the importance of management control on cost of sales as the Company had proceeded with the following
operations below:
(1) The Company had appointed the supply chain management in order to follow up on the product
movements. The supply chain management had its duties in the product acquisition plan, management of inventory
and cooperated with various units such as sales, marketing, information technology, accounting, and finance
departments, etc., in order to follow up on products movement, and data on type of products ordered from
customers. This also included on the ordering of large quantity of products in order to receive maximum
discount from the distributors. (2) The Company has policy to purchase products directly from the distributors as much as possible in
order to receive pricing advantage on product cost and constantly building good relationship with distributors.
(3) The Company realized the importance of product procurement and finding product sources
with production cost that gave advantage over competitors.
(4) The Company realized the importance on efficient inventory management system to control
on sufficient inventory by not causing unnecessary management cost, and causing high storage cost. The supply
chain management had to monitor product movements, and the Company had signed contract with
JWD InfoLogistics Co., Ltd., for renting warehouse and manage the inventory. The JWD InfoLogistics Co., Ltd.,
would give services on inventory count, inventory management, and moving products from the inventory
in preparation to load on to the Company’s trucks that arrive at the warehouse. The Company’s delivery trucks
will take these goods to distribution centers as per Company’s order. (5) The Company had acquired Oracle computer program for storage of accounting information, and
this program was able to make data processing on purchasing orders of the Company from suppliers, purchasing
orders from customers, inventory, etc. This helped on data collection on product movements in inventory
so that the Company would know situation of the remaining inventory in different times and these data would
be used on efficient inventory management.
104
TV Direct Public Company Limited
105
Selling and Administrative Expenses
The Company and subsidiaries’ selling and administrative expenses amounted to Baht 1,167.73 million in
2012, and amounted to Baht 1,208.35 million in 2013 which was at the ratio of total revenue at 51.91% and
57.38% respectively. The main selling and administrative expenses consisted of renting of advertising air-time
and production cost of advertising media which was at the ratio of 30% – 32% of the selling and administrative
expenses, and the employees cost was at the proportional ratio of 30% - 31% of selling and administrative cost.
In 2013, the Company and subsidiaries’ selling and administrative expenses ratio increased 5.46%,
which was derived from intense competitive situation due to the arrival of foreign companies, and the slowdown
of domestic retail market. The Company had to increase many expenses such as renting of more advertising airtime,
sales promotion, human resource development, information technology system, and depreciation cost of assets
used in the expansion in order to compete in the intense competition.
Other Expenses
The Company and subsidiaries had other expenses amounted to Baht 8.96 million in 2012, and figure
in 2013 showed Baht 0.33 million.
In 2012, other expenses was from buying shares for capital increase of the subsidiary company
TV Direct(Malaysia) Sdn. Bhd., amounted to Baht 6.26 million by calculating from the differences between purchasing
price and accounting price on the purchasing date and loss from disposal of assets at Baht 2.70 million.
For the year 2013, other expenses derived from loss on disposable of assets was at Baht 0.33 million.
Financing Cost
In 2012 - 2013, the Company and subsidiaries had financing cost of Baht 16.95 million and Baht 15.59
million respectively. Most of the interest paid of the Company and subsidiaries were from using the financial
limit on P/N and LC/TR which were the revolving credit facility types for foreign purchasing of finished products.
Moreover, interest expenses on loans from commercial banks for investments on the fixed assets of the
office, increasing sales representative, and increasing advertising media production had increased also. However,
financial cost in 2013 decreased due to registration of the Company in the stock market in July 10, 2013
as some part of the capital increase was used as working capital in order to reduce the financing cost.
(c) Net Profit and Net Profit Ratio
From the above operations, in 2012 - 2013 the Company and subsidiaries had net profit amounted to
Baht 48.18 million, and 36.63 million respectively which had the net profit ration of 2.14% and 1.64 % respectively. The Company had the rate on return on equity at 16.72 % in 2012 and at 7.04 % in 2013. Moreover, during
2011 - 2013, the Company had paid continuous dividend payments to shareholders at the dividend payment
rates of 73.47 %, 119.81% and 123.96 % respectively. Financial Position
(a)Assets
At the end of 2012 - 2013, the Company and subsidiaries had total assets of amount Baht 1,001.70
million and Baht 1,294.95 million respectively, and important assets of the Company and subsidiaries were
inventory, land, buildings, and equipment, account receivables and other receivables. In 2011, ratio of the important
assets and total assets was at 37.20 %, 29.91% and 13.94% respectively, and for 2013 the ratio of the important
assets and total assets was at 32.44 %, 27.30 % and 8.22 % respectively. Then, details of important assets
of the Company were as follows:
Account Receivables
The Company and subsidiaries had account receivables with allowance for doubtful accounts amounted
to Baht 54.80 million at the end of 2012, and amounted to Baht 104.89 million at the end of 2013, and as in general
majority of the Company’s customers would pay in cash immediately after products delivery at 85% of revenues
from sales and services.
However, the Company had account receivables with a type of customers such as department stores, modern
trades, pharmaceutical shops, and foreign companies in which the Company had policy to give credit terms about
30 – 90 days. Nevertheless, collection on account receivables period had been increasing from 9.00 days
in 2012 to 13.05 days in 2013, as the Company had adjusted its distribution system to the department stores,
modern trades, and pharmaceutical shops from direct sales to appointed distributors who already had business
with these customers.
106
TV Direct Public Company Limited
107
Overdue PeriodAt Dec. 31,2012At Dec. 31,2013
M. Baht
%
M. Baht
%
Not Overdue
24.3444.4235.8334.13
Overdue:
1 – 30 days
7.64
13.94
16.61
15.82
31 - 60 days
0.36
0.65
2.24
2.13
61 – 90 days
1.26
2.30
0.59
0.56
91 – 180 days
2.13
3.89
15.89
15.14
181 – 365 days
4.19
7.65
10.14
9.66
More than 365 days
14.88
27.15
23.69
22.56
54.80
100.00
104.99
100.00
(18.40)
(26.69)
-
-
36.40
78.30
Account receivables before allowance
for doubtful accounts
Less: Allowance for doubtful accounts
Less: Allowance for revaluation
Net Account Receivables
Account receivables before allowance for doubtful accounts in 2013 increased from figure in 2012,
as in 2013 the Company increased the wholesale and services ratio, thus, resulting in the increased account
receivables for both. Consideration on account receivables as per the overdue periods in the table above
it could be seen that account receivables in the not overdue period of the Company and subsidiaries at the year
ending of 2012 and 2013 had the proportional ratio of 44.42 % and 34.13 % against the account receivables
before allowance for doubtful accounts respectively. At the same time, the Company’s overdue account receivables
had the proportional ratio of 55.58 % and 65.87% against the account receivables before allowance for doubtful
accounts respectively. Most overdue account receivables were from accounts with more than 180 days overdue
which were at 34.80 % at the end of 2012, and at 32.22 % at the end of 2013 against the account receivables
before allowance for doubtful accounts respectively.
On consideration of the doubtful accounts, the Company would made consideration into 2 cases
(1) Retail account receivables whether from the distribution through the television marketing, direct
marketing through the TV Direct Showcase shops or through various digital media, the Company would make
consideration on doubtful accounts as follows:
Aging of Overdue Payment
Policy on consideration
on doubtful accounts
1 – 30 days
-
31 – 60 days
-
61 – 90 days
-
91 – 180 days
50 %
Over 180 days
100 %
(2) In case account receivables from transportation, foreign sale, or from services, if the retail account
receivables had the debts of not more than Baht 10,000 per case, the Company would consider setting allowance
for doubtful accounts by using the same procedures as retail account receivables as stated before, but if the
debt value of account receivables was more than Baht 10,000 the Company would consider on the case
by case basis.
At the end of 2012 - 2013, the Company had set the allowance for doubtful accounts at Baht 18.40 million
and at Baht 26.69 million respectively. This could be seen that the Company had set the allowance for doubtful
accounts at lesser value than the overdue accounts over 180 days because the Company did not set the allowance
for doubtful accounts of more than 180 days due to account receivables from wholesale and from some services
were estimated as collectable.
Inventory
At the end of 2012 - 2013, the Company and subsidiaries had inventory before allowance for obsolete products
and allowance for product value amounted to Baht 383.66 million and Baht 420.13 million respectively as
most of the remaining inventory was finished products and product during transportation which had proportional ratio against the total inventory at 99.29 % and 98.94 % respectively with the following details.
108
TV Direct Public Company Limited
109
Finished Products
Products during Transportation
Consumable materials
At December 31 2012
M. Baht
%
At December 2013
M. Baht
%
328.6485.66
389.6990.86
52.28
13.63
34.65
8.08
2.740.714.561.06
Total
383.66100.00428.90100.00
Less: Allowance for obsolete and slow (10.93)
(8.15)
moving – finished products
Less: Allowance products with cost higher than (0.08)
(0.62)
net received – finished products
Inventory - net
372.65
420.13
From above table, most of the remaining inventories were the finished products ready for distribution and
products during transportation as the finished and transporting products increased in volume in accordance with
constantly increasing sales. As the Company had increased its marketing distribution channel, hence remaining
inventory had to be planned to have enough quantity and covering varieties of products categories in correspondence
with customers’ demand. As the product ordering lead time required duration of 3 months, the Company had to
keep at least 3 months of inventory, thus resulting in high level of inventory. However, the Company realized the
importance of efficient inventory management by appointing the supply chain management to monitor product
movements. The supply chain management had its duties in the product acquisition plan, management of inventory
and cooperated with various units such as sales, marketing, information technology, accounting, and finance departments,
etc., in order to follow up on products’ movements, and data on type of products ordered from customers. The obtained
information would be used to evaluate product requirement of customers and for suitable planning of ordering plan
on various products.
From 2012 - 2013, the Company had average selling period of 118.18 days and 146.79 days respectively.
In 2013, the average selling period increased from number in 2012 because during the end of the year 2013,
the Company had made preparation for increased product inventory to participate on increasing sales in the
beginning of 2014 as per planned schedule.
At the end of 2012 - 2013, the Company had made allowance for product value amounted to Baht 11.01
million and Baht 8.77 million, while ratio of the product value against total inventory was at 2.86 % and 2.04 %
respectively. Other Current Assets At the end of 2012 - 2013, the Company and subsidiaries had net other current assets amounted to
Baht 112.29 million and Baht 33.27 million with the following details:
Other Receivables
Receivable assets
At December 31, 2012
M. Baht
%
At December 31, 2013
M. Baht
%
5.174.605.37
16.14
----
Prepaid sales Tax
4.87
4.34
5.14
15.45
Input tax – not due
5.69
5.07
2.77
8.33
Prepaid Expenses
8.747.787.38
22.18
Advances
0.429.370.611.83
Receivables from exchanged of products
5.40
4.81
5.33
16.02
and services
Others
82.0073.03 6.6720.05
Total
112.29100.00 33.27100.00
Less: Allowance for doubtful debts
Other Current Assets - Net
(8.14)
(10.11)
104.15
23.16
At the end of 2012, other important current assets that were important were the accrued compensation at
Baht 82.00 million, the prepaid expenses at Baht 8.74 million such as the advanced rent payment, advanced insurance payment, etc. The account receivables from exchanged of products and services were at Baht 5.40 million and
the Company had made allowance for doubtful accounts at 100%, and also other receivables at Baht 5.17 million in
which the Company had made allowance for doubtful debt of Baht 2.74 million.
At the end of 2013, other important current assets were the accrued compensation of Baht 6.67 million, the
prepaid expenses of Baht 7.38 million such as the advanced rent payment, advanced insurance payment, etc.,
receivables from exchanged of products and services at Baht 5.33 million which the Company had set allowance
for doubtful accounts at 100 %, and other receivables at Baht 5.37 million with allowance for doubtful accounts
had been set at Baht 4.78 million.
Land, Building and Equipment
The Company and subsidiaries had lands, buildings and equipment at net amount of Baht 299.57 million
and Baht 353.46 million at the end of 2012 - 2013 respectively which had ratio against total assets
at 29.91 % and 27.30 % respectively.
110
TV Direct Public Company Limited
111
At the end of 2012, the Company and subsidiaries had lands, buildings and equipment at net amount of
Baht 299.57 million at ratio of 29.91 % of total assets, an increase of Baht 76.50 million comparing to 2011.
This was from the construction work of the new office building at approximated amounted of Baht 65.32 million
(the total project value was Baht 100 million), investment on setting up of the utility system at the 2nd studio building
about Baht 4.43 million, improvement of the basement floor of the main office building at about Baht 1.60 million,
and decoration improvement for the TV Direct Showcase at about Baht 1.40 million.
At the end of 2013, the Company and subsidiaries had lands, buildings and equipment at net amount of
Baht 353.46 million at ratio of 27.30 % of total assets, an increase of Baht 53.89 million comparing to 2012.
This was from the construction work of the new office building at the amount of Baht 100 million which was opened
as the building for the call center and products procurement offices. (b)Liquidity
Cash Flow
In 2012, the Company and subsidiaries had net cash flow from the operating activities of Baht 5.39 million, as
the main cause was from increased inventory at Baht 118.91 million. This was due to damage from the office fire
in October as more products were ordered as replacement and during the year end when the Company had
made preparation on increasing products in order to serve for sufficient sales plan. Account receivables and
other receivables increased to Baht 9.13 million. Moreover, the Company and subsidiaries had net cash flow for
investment activities at Baht 125.98 million which was mainly from payment of fixed assets amounted to
Baht 88.81 million. The main items were from construction of the new office building approximately at Baht 65.32
million (project valued at Baht 100 million), investment for infrastructure plan of the 2nd studio about Baht 4.34 million,
improvement for the basement level of the head office about Baht 1.60 million, and the TV Direct Showcase
showroom decoration at Baht 1.40 million while the second part was for investment in subsidiaries at Baht 27.20 million.
Additionally, the Company and subsidiaries had net cash flows receiving from the financing activities at Baht
136.68 million by consisting of net cash received on short term loan from the financial institution at Baht 39.50 million,
net cash received on long term loan from the financial institution at Baht 20.99 million, net cash received from
increasing ordinary share capital at Baht 120.246 million, and dividend payment to ordinary shareholders at
Baht 50.53 million. Hence, these activities resulted in increased in cash and cash equivalent to the amount
of Baht 6.38 million.
In 2013, the Company and subsidiaries had net cash flow for operating activities of Baht 48.86 million which
was mainly due to profit from operations before changes in operating assets and liabilities at Baht 138.87 million.
Account receivables and other receivables decreased to amount of Baht 23.21 million even though inventory had
increased to Baht 50.57 million. This was to make preparation for additional products to be sufficient enough
for sales plan in the early 2014. Moreover, the Company and subsidiaries had net cash flow spent in the investing
activities at Baht 228.27 million which was mainly from purchasing of fixed assets at Baht 100.46 million.
The main items were the construction of the new office about Baht 100 million for the call center and products
procurement office. This also included cash received from registration of the ordinary share capital for investing
in marketable securities at Baht 197.20 million. Moreover, the Company and subsidiaries had received net cash
flow from financing activities at the amount of Baht 269.59 million which consisted of the net cash received on short
term loan from financial institution at Baht 128.91 million, net cash received on long term loan at Baht 36.87 million,
net cash received from the ordinary shares increased at Baht 423 million, and cash dividend payment for ordinary
shares of Baht 70.36 million. Hence, from these causes, the Company and subsidiaries, in 2013, had increasing cash and cash equivalent at amount of Baht 79.13 million.
Liquidity Ratio
At the end of 2012 - 2013, the Company and subsidiaries had liquidity ratio of 0.99 times and 1.53 time respectively,
and quick liquidity ratio was equal to 0.14 time and 0.46 time respectively. The cause that had made much different
between the quick liquidity ratio and the liquidity ratio was because the Company and subsidiaries had high inventory
ratio versus current asset ratio at the rate of 63.90 % and 61.46 % respectively. The important reasons that the liquidity
ratio and quick liquidity ratio had an increasing trend because part of the cash received from capital increase registration
was used for payments of bank overdraft and for short term loan from financial institution in order to reduce the
financial cost. However, the Company had never encountered problems on liquidity and payment on current liabilities.
Consideration on the cash cycle showed increasing trend, as the Company and subsidiaries had cash cycle
at 61.52 days in 2012, and 84.45 days in 2012. Increasing duration of cash cycle was from the following:
(1) The average debt collection equalled to 9.00 days in 2012 and equalled to 13.05 days in 2013.
(2) The average sale duration of the Company and subsidiaries in 2012 was 118.18 days, and equalled
to 146.79 days in 2013.
112
20122013
Liquidity ratio
(time)
0.99
1.53
Quick Liquidity Ratio
(time)
0.14
0.46
Average Collection Period
(day)
9.00
13.05
Product Sale Duration
(day)
118.18
146.79
Debt Payment Period
(day)
65.66
75.39
Cash Cycle
(day) 61.52
84.45
TV Direct Public Company Limited
113
(c)
Sources of Funds
Liabilities
At the end of 2012 - 2013, the Company and subsidiaries total liabilities amounted to Baht 663.475 million
and Baht 552.88 million respectively. Consideration on the liabilities structure of the Company and subsidiaries
showed that most liabilities were the current liabilities for normal business operations which had proportional
ratio against total liabilities at 88.37 % at the end of 2012, and at 81.06 at the end of 2013. Important current liabilities
consisted of short term loans from financial institutions at 38.58 % of total liabilities at the end of 2012, and
at 22.98 % of total liabilities at the end of 2013 which came mainly from the promissory note and LC/TR for ordering
domestic and foreign products. Moreover, current liabilities also included account payables and other liabilities
were at 44.60 % of total liabilities at the end of 2012, and at 49.73 % of total liabilities at the end of 2013.
Hence, total liabilities of the Company and subsidiaries decreased as most liabilities of the Company were
from trade account payables and other payables, overdraft and short term loan from financial institution as stated
above. Important liabilities had the following details:
- At the end of 2012 - 2013, the Company and subsidiaries had account payables amounted to Baht
189.72 million and Baht 179.21 million respectively with average debt payment period at 65.66 days
and 75.39 days respectively. The reason that account payables decreased were from the result of decreasing in
purchasing finished products comparing to sales volume in 2012 that had to be ordered in anticipation with products
loss due to fire in October 2012.
- At the end of 2012 - 2013, the Company and subsidiaries had bank overdraft and short term
loan from financial institutions at the amount of Baht 255.97 million, and Baht 127.06 million respectively, with
the following details:
(unit : Million Baht)
At Dec. 31, 2012
At Dec. 31, 2013
Bank Overdraft
1.66
-
Promissory Note
87.22
3.89
Trust Receipt 167.09
123.17
Total255.97 127.06
At the end of 2012 - 2013, the Company and subsidiaries had remaining liabilities on the type of long
term loan of Baht 72.39 million, and Baht 116.36 million respectively. As at December 31, 2013, the Company
had long term loans from 3 financial institutions as follows:
(1) In February 17, 2011, the Company had entered into the long term loan contract with a commercial
bank for the amount of Baht 15 million for investment in new studio, and purchasing of machines and equipment
for its operations. As at March 31, 2012, the remaining loan contract was at Baht 7.81 million in which the Company
had mortgaged its land with constructed building including Directors who had joined in to guarantee debt
in full. Moreover, the Company wanted to protect its debt service coverage ratio (DSCR) to be not lower than
2 to 1 time, and debt to equity ratio of not more than 2.5 to 1 time for the financial statement at the end of fiscal
year 2011, and not more than 2 to 1 time for the financial statement at the end of fiscal year 2012, and in later years.
As at December 31, 2013, the Company had already made full payments as per loan agreements.
(2) In December 8, 2011, the Company had entered into the long term loan contract with a commercial
bank for the amount of Baht 40 million for investment in purchasing of land with constructed building for its new
head office. As at March 31, 2012, the remaining loan contract was at Baht 39.95 million in which the Company had
mortgaged its land. Moreover, the Company wanted to protect its debt service coverage ratio (DSCR) to be
not lower than 1.5 to 1 time, and debt to equity ratio of not more than 2.0 to 1 time for the financial statement at
the end of fiscal year 2012, and not more than 1.75 to 1 time for the financial statement at the end of fiscal
year 2013 until complete debt payment (hence, the ratio of liabilities to capital would not be equal to zero). As at
December 31, 2013, the loan commitments as per the loan contracts had outstanding amount of Baht 24.18 million.
(3) In March 1, 2012, the Company had entered into the long term loan contract with a commercial bank
for the amount of Baht 100 million for investment in land with building for its new head office building using land
and its building structure as collaterals. 114
TV Direct Public Company Limited
115
In December 31, 2012 and at December 31, 2013, the Company had DSCR ratio and debt to equity ratio
as follows:
DSCR*Debt to Equity Ratio **
Dec. 31, 2012 Dec. 31, 2113 Dec. 31, 2012
Dec. 31, 2113
Financial Statement
6.81 time
6.37 time
1.65 time
0.66 time
5.25 time
4.01 time
1.94 time
0.75 time
Not less than
Not less than
Not over 2 time
Not over 2 time
2 time
2 time
of the Company
Consolidated Financial
Statement
Term of Loan
Remark: 1) DSCR was calculated from profit before depreciation, financing cost, and income tax / long
term loan with due date of one year from previous year + interest paid.
2) Debt to equity ratio calculated from total liabilities / shareholders’ equity.
This showed that the Company was able to keep the debt service coverage ratio (DSCR) as specified
in the loan contracts as in the table above. As at December 31, 2012, the debt to equity ratio calculated from
financial statements of the Company and the consolidated financial statements of the Company and subsidiaries
were equal to 1.66 times and 1.94 times respectively. Moreover, as at December 31, 2013, the debt to equity ratio
calculated from financial statements of the Company and the consolidated financial statements of the Company
and subsidiaries were at 0.66 times and 0.75 times respectively which were twice lower than specified in the contract.
Shareholders’ Equity
At the end of 2012, the Company and subsidiaries showed the shareholders’ equity at Baht 338.23 million,
an increase amount of Baht 99.88 million from 2011. This was due from the Company’s registration in the
Stock Exchange of Thailand by initial public offering (IPO) in August 23, 2012 with additional ordinary shares
of amount Baht 28.96 million and received premium on common stocks at amount Baht 89.06 million, and with annual
profit of Baht 48.97 million while the dividend payment for ordinary shareholders was at Baht 18.80 million.
At the end of 2013, the Company and subsidiaries showed the shareholders’ equity at Baht 742.07 million,
an increase amount of Baht 403.84 million from 2012. As in July 10, 2013, the Company received additional
payment on ordinary shares at amount Baht 47.00 million and premium on common stocks at amount
Baht 376.00 million while the fiscal year profit was Baht 41.21 million, and dividend payment for ordinary
shares was at Baht 70.50 million. Adequacy of the Capital Structure The Company and subsidiaries had the debt to equity ratio at 1.53 times at the end of 2010, at 2.26 times
at the end of 2011. Reason for the constant rising of debt to equity ratio was from the continuous business
expansion from sales and services’ revenues. The Company had to purchase additional finished products
to serve growth in sales revenue by using short term loan from commercial bank in the forms of promissory note
an LC/TR. Moreover, the Company had invested in expansion of office building to serve business expansion in various
business functions, thus, generated some additional long term loan.
As at December 31, 2012 and 2013, the Company and subsidiaries had debt to equity ratio at 1.94 times
and 0.75 times respectively which was from the decrease in liabilities and increase in the shareholders’ equity as
explained in the liabilities and shareholders’ equity topic.
Remuneration for Auditor
Remuneration of the auditor for 2013 was paid to the Company’s auditor, Price Waterhouse Cooper
ABAS Co., Ltd:
- Audit services : 1,775,000 Baht
- Non Audit Services : none
116
TV Direct Public Company Limited
117
Board of Directors’ Report
Dear Shareholders,
TV Direct Public Company Limited
The Board of Director is responsible for the reporting of the consolidated financial
statements on the company and subsidiaries, contents of which have been consistently prepared
with respect to the Thai generally accepted accounting standards where prudence are duly exercised
and information disclosed in the notes accompanying the statements.
The Annual General Meeting of Shareholders Year 2011 has appointed the Audit
Committee comprising independent directors who are not involved in the day-to-day operations
to take responsibility over the quality of the financial reports and internal controls, which the Audit
Committee’s opinion was described in Audit Committee Report shown in this annual report.
The Board of Director has considered the consolidated financial statements of 2013 on the
company and subsidiaries and concurs with the Executives and the authorized auditors that the
company’s the financial position and the result of operation presents fairly in conformity with generally
accepted accounting principles.
(Mr. Phongsuree Bunnag)
Chairman of the Board
(Mr. Songpol Shanmatkit)
Director / Chief Executive Officer
Audit Committee Report
To: All Shareholders
TV Direct Public Company Limited
For the fiscal year 2013, the Audit Committee performed its duties in accordance with
the Audit Committee Charter which had been approved by the Company’s Board of Directors.
Besides placing importance on enhancing and monitoring efficiency aspects of the Company, the Audit
Committee also gave importance on enhancing good corporate governance. This is to ensure and
provide confidence to shareholders and other stakeholders that the Company conducts business
in a transparent and ethical manner, consistent with its code of conduct.
The financial statements of 2013 had been co-reviewed by the Executive Committee and
the Auditor, and the Audit Committee. The Audit Committee concurs with the authorized auditor
and the Executive Committee that the Company’s financial statements and financial data disclosure
are complete, sufficient and appropriate and in accordance with the generally accepted accounting
standard. The Company’s internal control systems were appropriate and no substantial defect had
been found. Moreover, the Company’s operations were correct and consistent with related laws
on matters that might have involved conflict of interest. The Audit Committee is of the opinion that
such matters had been conducted with appropriate reasons with the best interest of the Company
in mind.
The Audit Committee also approved in setting up the Whistle Blower Policy which was
the protection measure for employee who made complaint, or supplying information concerning
activity that is not conforming to law, rule, and regulation of the Company, and ethic, or using authority
illegally. The Company expected to proceed and completed with the Whistle Blower Policy within the
2nd quarter of 2014.
The Audit Committee has reviewed and concurs with the suitability in terms of qualification,
independence, accounting cost, performance, and service readiness of the external auditor. Hence,
the Audit Committee has proposed to the Company’s Board of Directors for the appointment of
PricewaterhouseCoopers ABAS Ltd. as the Company’s auditor for 2014 which will be submitted for
resolution in the next shareholders meeting.
In 2013, the Audit Committee had 5 meetings with details of attendance of members of the
Audit Committee as follows:
Name
Number of Meeting / Total Meeting
2013
118
1. Mr. Tada Charukitpaisarn
5/5
2. Asst. Prof. Anucha Chintakanond
5/5
3. Mr. Suthep Suebsantiwongse
5/5
TV Direct Public Company Limited
119
The Audit Committee performed as per the assigned duties and responsibilities by
using knowledge, capability as well as sufficient cautiousness, and freedom without any limitation
in receiving information from Executives, employees, and related persons. This included giving
various suggestions and recommendation for all stakeholders equally. Thus, performing its
duties would be accomplished as per assignment from the Company’s Board of Directors.
On the overall summarization, the Audit Committee concluded that the Company’s Board
of Directors as well as Executives, and the Company’s Executive Committee were ethical and
committed in performing their duties under the governance policy with efficiency, transparency
and reliability. This also included sufficient risk management policy and proper internal system
suitable to the operations.
(Mr. Tada Charukitpaisarn)
Chairman of the Audit Committee
AUDITOR’S REPORT
To the Shareholders of TV Direct Public Company Limited
I have audited the accompanying consolidated and company financial statements
of TV Direct Public Company Limited and its subsidiaries and of TV Direct Public Company
Limited, which comprise the consolidated and company statements of financial position as at 31
December 2013, and the related consolidated and company statements of comprehensive income,
changes in shareholders’ equity and cash flows for the year then ended, and a summary of significant
accounting policies and other notes.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with Thai Financial Reporting Standards, and for such internal control
as management determines is necessary to enable the preparation of financial statements that are
free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
My responsibility is to express an opinion on these financial statements based on my audit.
I conducted my audit in accordance with Thai Standards on Auditing. Those standards require that
I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s judgment,
including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the entity’s preparation and fair presentation of the financial statements in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
120
TV Direct Public Company Limited
121
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a
basis for my audit opinion.
Opinion
In my opinion, the consolidated and company financial statements referred to above present
fairly, in all material respects, the consolidated and company financial position of TV Direct Public
Company Limited and its subsidiaries and of TV Direct Public Company Limited as at 31 December
2013, and its consolidated and company results of operations and its cash flows for the year
then ended in accordance with Thai Financial Reporting Standards.
Sudwin Panyawongkhanti
Certified Public Accountant (Thailand) No. 3534
PricewaterhouseCoopers ABAS Ltd.
Bangkok
24 February 2014
Consolidated and Company Financial Statements
31 December 2013
122
TV Direct Public Company Limited
1,294,945,921
Total assets
32,973,786
611,332,358
19
6,401,281
353,457,280
Total non-current assets
Other non-current assets (net)
128,219
17
18
Leasehold right (net)
16
Deferred tax assets (net)
34,100,283
15
Property, plant and equipment (net)
Intangible assets (net)
154,598,313
29,673,196
13
14
Available-for-sale investments
-
12
Restricted deposits at financial institutions
Investments in subsidiaries, cost method
Non-current assets
1,248,664
683,613,563
Other current assets (net)
Total current assets
21,417,895
7,909,343
11
420,125,756
Deposits for goods purchases
10
Value added tax
Inventories (net)
-
Short-term loans to an associate and other
related party
106,456,955
-
9
Trade and other accounts receivable (net)
126,454,950
1,001,699,944
418,587,658
34,561,039
3,469,158
648,219
20,823,300
299,569,626
32,257,138
27,259,178
-
583,112,286
1,896,300
10,566,066
11,054,298
372,646,512
-
-
139,623,080
47,326,030
Baht
2012
2013
Baht
31 December
Restated
Consolidated
31 December
Short-term loans to other company
8
Notes
Cash and cash equivalents
Current assets
Assets
As at 31 December 2013
776,430,682
309,509,723
31,585,577
4,331,527
1,168,219
19,621,991
223,073,917
29,728,492
-
-
466,920,959
1,433,546
7,589,877
18,288,999
333,130,176
3,915,697
7,043,390
54,569,566
40,949,708
Baht
2012
1 January
1,358,259,075
714,214,730
32,460,461
6,359,728
128,219
33,798,275
345,259,401
29,673,196
149,635,000
116,900,450
644,044,345
114,269
6,782,824
21,417,895
404,382,369
-
-
122,178,875
89,168,113
Baht
2013
31 December
Company
Restated
The accompanying notes on pages 10 to 55 are an integral part of the financial statements.
Statement of Financial Position
1,053,490,634
474,016,936
30,559,793
3,281,549
648,219
20,494,499
296,472,818
32,257,138
1,202,265
89,100,655
579,473,698
826,571
10,075,083
11,054,298
363,130,490
-
-
150,524,657
43,862,599
Baht
2012
31 December
Restated
Company
779,986,977
341,008,968
26,262,921
4,075,560
1,168,219
19,336,033
221,337,088
29,728,492
-
39,100,655
438,978,009
100,805
7,579,648
18,288,999
329,463,202
-
-
55,059,641
28,485,714
Baht
2012
1 January
Restated
123
124
TV Direct Public Company Limited
As at 31 December 2013
Liabilities and Shareholders’ Equity
Current liabilities
Short-term borrowings from financial institutions
Trade and other accounts payable
Current portions of
- long-term borrowings from financial institutions
- liability under finance lease agreements (net)
Accrued income tax
Other current liabilities
Total current liabilities
Non-current liabilities
Long-term borrowings from financial institutions
Liability under finance lease agreements (net)
Employee benefit obligations
Other non-current liabilities
Total non-current liabilities
Total liabilities
Shareholders’ Equity
Share capital
Authorised share capital
493,500,000 ordinary shares of Baht 0.50 each
376,000,000 ordinary shares of Baht 0.50 each
188,000,000 ordinary shares of Baht 1.00 each
Issued and paid-up share capital
469,999,992 ordinary shares of Baht 0.50 each
376,000,000 ordinary shares of Baht 0.50 each
159,040,000 ordinary shares of Baht 1.00 each
Share premium
Retained earnings
Appropriated - Legal reserve
Unappropriated
Surplus from land revaluation (net)
Loss from business combination
under common control
Gain on measurement of
available-for-sale investments (net)
Translation difference
Total parent’s equity
Non-controlling interests
Total shareholders’ equity
Total liabilities and shareholders’ equity
810,940
(430,803)
734,873,049
7,196,583
742,069,632
1,294,945,921
13
29
(13,687,145)
12
47,342
1,526,407
342,356,922
(4,123,044)
338,233,878
1,001,699,944
(13,687,145)
12,069,134
40,020,172
25,316,392
188,000,000
89,064,620
234,999,996
465,064,588
16,508,719
6,290,362
25,316,392
188,000,000
-
57,768,577
7,804,848
8,907,732
2,699,126
77,180,283
663,466,066
14,616,433
6,400,059
7,636,756
5,770,744
586,285,783
255,972,679
295,889,112
246,750,000
-
28
26
22
23
25
84,900,974
2,248,541
14,428,964
3,115,003
104,693,482
552,876,289
31,460,151
6,988,573
2,842,185
4,904,267
448,182,807
22
23
24
127,055,967
274,931,664
21
20
Notes
31 December
2013
Baht
Consolidated
Restated
31 December
2012
Baht
Statement of Financial Position (Cont’d)
523,783
238,599,245
(245,379)
238,353,866
776,430,682
-
7,368,222
46,350,848
25,316,392
159,040,000
-
188,000,000
40,448,010
1,301,488
4,346,103
2,393,480
48,489,081
538,076,816
7,480,000
2,365,564
13,586,008
3,434,904
489,587,735
205,291,164
257,430,095
Restated
1 January
2012
Baht
703,062
816,508,067
816,508,067
1,358,259,075
-
16,508,719
73,915,310
25,316,392
234,999,996
465,064,588
246,750,000
-
84,900,974
2,248,541
14,428,964
3,115,003
104,693,482
541,751,008
31,460,151
6,988,573
2,842,185
4,197,311
437,057,526
127,055,967
264,513,339
31 December
2013
Baht
1,812
397,830,996
397,830,996
1,053,490,634
-
12,069,134
83,379,038
25,316,392
188,000,000
89,064,620
188,000,000
-
57,768,577
7,804,848
8,907,732
2,699,126
77,180,283
655,659,638
14,616,433
6,400,059
7,512,626
5,309,881
578,479,355
255,972,679
288,667,677
Company
Restated
31 December
2012
Baht
245,650,747
245,650,747
779,986,977
-
7,368,222
53,926,133
25,316,392
159,040,000
-
188,000,000
40,448,010
1,301,488
4,346,103
2,393,480
48,489,081
534,336,230
7,480,000
2,365,564
13,586,008
2,917,311
485,847,149
205,291,164
254,207,102
Restated
1 January
2012
Baht
125
Statement of Comprehensive Income
For the year ended 31 December 2013
Consolidated
Company
Restated
Notes
Revenues from sales and services
Cost of sales and services
Gross profit
Net compensation income from fire incident
at a warehouse
Other income
30
31
Profit before expense
Selling expenses
Administrative expenses
Other expenses
Restated
2013
Baht
2012
Baht
2013
Baht
2012
Baht
2,203,233,718
2,237,080,041
2,176,044,485
2,222,231,916
(880,856,019)
(980,841,073)
(875,882,482)
(981,722,570)
1,322,377,699
1,256,238,968
1,300,162,003
1,240,509,346
8,037,352
44,518
8,037,352
44,518
19,978,785
12,195,294
18,518,968
11,673,448
1,350,393,836
1,268,478,780
1,326,718,323
1,252,227,312
(1,063,722,750)
(992,588,851)
(1,040,414,094)
(965,344,171)
(216,631,744)
(175,140,995)
(189,090,229)
(154,973,496)
32
(326,678)
(8,962,215)
(73,410)
(2,576,537)
Finance costs - interest expense
34
(15,593,911)
(16,948,946)
(15,593,911)
(16,873,995)
Profit before income tax
33
54,118,753
74,837,773
81,546,679
112,459,113
Income tax
35
(16,203,152)
(27,764,771)
(16,072,683)
(27,707,796)
37,915,601
47,073,002
65,473,996
84,751,317
(2,045,475)
1,064,449
-
-
954,497
59,178
876,562
2,265
Profit for the year
Other comprehensive income
- translation difference
- gain on measurement of
available-for-sale investments
14
- changes in deferred income tax liabilities
• gain on measurement of
available-for-sale investments
Total comprehensive income for the year
(190,899)
(11,836)
(175,312)
(453)
36,633,724
48,184,793
66,175,246
84,753,129
41,207,914
48,967,736
65,473,996
84,751,317
Profit attributable to:
Equity holders of the parent
Non-controlling interests
(3,292,313)
(1,894,734)
-
-
37,915,601
47,073,002
65,473,996
84,751,317
40,014,302
50,017,702
66,175,246
84,753,129
Comprehensive income attributable to:
Equity holders of the parent
Non-controlling interests
(3,380,578)
(1,832,909)
-
-
36,633,724
48,184,793
66,175,246
84,753,129
0.1451
0.1556
0.2511
Earnings per share for profit attributable
to the equity holders of the parent
Basic earnings per share (Baht)
36
0.0979
Diluted earnings per share (Baht)
36
0.0963
0.1530
The accompanying notes on pages 10 to 55 are an integral part of the financial statements.
126
TV Direct Public Company Limited
28
27
Legal reserve
Dividend paid
under common control
-
under common control
Closing balance as at 31 December 2013
Total comprehensive income for the year
Non-controlling interests increase during the year
29
12
28
27
Legal reserve
Dividend paid
Loss from business combination
-
26
-
-
-
-
465,064,588
234,999,996
-
-
-
-
375,999,968
-
89,064,620
-
-
-
-
-
89,064,620
Share
premium
-
-
-
-
26
46,999,996
188,000,000
-
-
Share premium
29
-
-
-
28,960,000
159,040,000
-
159,040,000
Authorised,
issued and
fully paid-up
share capital
Increase in share capital
for the year 2013
Changes in shareholder’s equity
Closing balance as at 31 December 2012
Total comprehensive income for the year
Non-controlling interests increase during the year
12
26
Share premium
Loss from business combination
26
6
Increase in share capital
for the year 2012
Changes in shareholder’s equity
Balance after adjustment
accounting policy
Retrospective adjustment from change in
as previously reported
Opening balance as at 1 January 2012
Notes
For the year ended 31 December 2013
16,508,719
-
-
-
-
4,439,585
-
-
12,069,134
-
-
-
-
4,700,912
-
-
7,368,222
-
7,368,222
6,290,362
41,207,914
-
-
(70,498,139)
(4,439,585)
-
-
40,020,172
48,967,736
-
-
(50,597,500)
(4,700,912)
-
-
46,350,848
10,660,625
35,690,223
Restated
Unappropriated
Retained earnings
Appropriated legal
reserve
Consolidated (Baht)
25,316,392
-
-
-
-
-
-
-
25,316,392
-
-
-
-
-
-
-
25,316,392
(6,329,098)
31,645,490
Restated
Surplus
from land
revaluation
-
-
-
-
-
-
-
-
-
810,940
763,598
-
-
-
-
-
-
47,342
47,342
Restated
Gain on
measurement of
available-for-sale
investments
(430,803)
(1,957,210)
-
-
-
-
-
-
1,526,407
1,002,624
-
-
-
-
-
-
523,783
-
523,783
Translation
differences
Other comprehensive income
Attributable to owners of the parent
The accompanying notes on pages 10 to 55 are an integral part of the financial statements.
Statements of Changes in shareholders’ Equity
(13,687,145)
-
-
-
-
-
-
-
(13,687,145)
-
-
(13,687,145)
-
-
-
-
-
-
-
Loss from
business
combination
under common
control
734,873,049
40,014,302
-
-
(70,498,139)
-
375,999,968
46,999,996
342,356,922
50,017,702
-
(13,687,145)
(50,597,500)
-
89,064,620
28,960,000
238,599,245
4,331,527
234,267,718
Total
owners of
the parent
7,196,583
(3,380,578)
14,700,205
-
-
-
-
-
(4,123,044)
(1,832,909)
(2,044,756)
-
-
-
-
-
(245,379)
-
(245,379)
Noncontrolling
interests
742,069,632
36,633,724
14,700,205
-
(70,498,139)
-
375,999,968
46,999,996
338,233,878
48,184,793
(2,044,756)
(13,687,145)
(50,597,500)
-
89,064,620
28,960,000
238,353,866
4,331,527
234,022,339
Total
Changes in shareholder’s equity
for the year 2012
Increase in share capital
Share premium
Legal reserve
Dividend payment
Total comprehensive income for the year
Closing balance as at 31 December 2012
Changes in shareholder’s equity
for the year 2013
Increase in share capital
Share premium
Legal reserve
Dividend payment
Total comprehensive income for the year
Closing balance as at 31 December 2013
accounting policy
Balance after adjustment
Opening balance as at 1 January 2012
as previously reported
Retrospective adjustment from change in
26
26
28
27
26
26
28
27
6
Notes
46,999,996
234,999,996
159,040,000
28,960,000
188,000,000
-
159,040,000
Authorised,
issued and
fully
paid-up
share
capital
For the year ended 31 December 2013
-
-
375,999,968
465,064,588
89,064,620
89,064,620
Share
premium
4,439,585
16,508,719
7,368,222
4,700,912
12,069,134
-
7,368,222
(4,439,585)
(70,498,139)
65,473,996
73,915,310
46,350,848
(4,700,912)
(50,597,500)
84,751,317
83,379,038
10,404,658
43,521,475
25,316,392
25,316,392
25,316,392
(6,329,098)
31,645,490
701,250
703,062
1,812
1,812
-
-
Consolidated (Baht)
Attributable to owners of the parent
Retained earnings
Other comprehensive
income
ApproRestated
Restated
Restated
priated UnappropriSurplus
Gain on
legal reserve
ated
from land
measurement
revaluation
of
availablefor-sale
investments
The accompanying notes on pages 10 to 55 are an integral part of the financial statements.
Statements of Changes in shareholders’ Equity (Cont’d)
46,999,996
375,999,968
(70,498,139)
66,175,246
816,508,067
238,353,866
28,960,000
89,064,620
(50,597,500)
84,753,129
397,830,996
4,075,560
241,575,187
Total
127
Statements of Cash Flows
For the year ended 31 December 2013
Consolidated
Notes
2013
Baht
Company
2012
Baht
2013
Baht
2012
Baht
Cash flows from operating activities
Profit before income tax
54,118,753
74,837,773
81,546,679
112,459,113
15,16
50,870,836
36,062,268
49,337,097
35,186,331
17
520,000
520,000
520,000
520,000
9
10,263,434
1,670,179
10,263,434
1,904,833
24
(156,781)
1,015,694
(156,781)
1,015,694
478,315
4,710,252
478,315
4,710,252
(2,780,438)
(2,924,742)
(2,005,919)
(3,270,759)
Adjustments:
Depreciation and amortisation charge
Leasehold right amortisation
Allowance for doubtful accounts (reversal)
Allowance for goods returned
Loss from bad debt
Allowance for obsolete and slow moving inventories (reversal)
10
Allowance for inventories cost in excess of net
realisable value (reversal)
533,306
(89,678)
533,306
(89,678)
Net (gain) loss from physical count of inventory
427,072
(809,563)
386,360
(1,086,899)
4,223,243
4,480,283
4,211,430
4,253,417
-
6,261,688
-
-
Loss from destruction of inventory
Loss from acquiring investment in subsidiary*, **
12
Compensation income from fire incident at a warehouse
30
-
(82,000,434)
-
(82,000,434)
Loss from write-off inventory from fire incident
30
-
81,793,263
-
81,793,263
Loss from write-off toolings from fire incident
30
-
109,410
-
109,410
Loss from write-off supplies from fire incident
30
-
53,243
-
53,243
Loss from write-off equipment from theft
31
-
23,904
-
23,904
Gain from disposal of available-for-sale investments
31
(628,223)
-
(356,173)
-
32
326,678
2,700,527
73,410
2,576,537
-
(515,941)
-
(515,941)
6,431,168
5,792,196
6,431,168
5,792,196
-
1,386,000
-
1,386,000
Loss from disposals property, plant and equipment
and intangible assets
Provision for unused leave (reversal)
Employee benefits obligation
25
Employee expense from selling shares to employees
Interest income
31
(1,355,182)
(1,502,467)
(1,278,879)
(1,065,659)
Finance costs - Interest from borrowings from financial institutes
34
14,489,126
15,974,029
14,489,126
15,930,165
Finance costs - Interest from finance lease agreements
34
1,104,785
943,830
1,104,785
943,830
34
-
31,087
-
-
138,866,092
150,522,801
165,577,358
180,628,818
Finance costs - Interest from borrowings from others
and related parties
The accompanying notes on pages 10 to 55 are an integral part of the financial statements.
128
TV Direct Public Company Limited
129
Statements of Cash Flows (Cont’d)
For the year ended 31 December 2013
Consolidated
Notes
2013
Baht
Company
2012
Baht
2013
Baht
2012
Baht
Changes in working capital
- trade and other accounts receivable**
- inventories*, **
23,206,136
(9,130,333)
17,604,033
(20,079,667)
(50,572,633)
(118,907,001)
(45,067,262)
(115,359,238)
(10,363,597)
2,656,723
647,636
1,587,253
(18,011,856)
460,098
(909,936)
415,877
7,234,701
(2,976,189)
296,974
(2,661,292)
17,745,113
(609,602)
(1,230,567)
305,646
(10,363,597)
3,292,259
712,302
(1,900,668)
(21,208,746)
214,005
(909,936)
415,877
7,234,701
(2,495,435)
(725,766)
(4,296,872)
30,997,257
(24,033)
(1,230,567)
305,646
87,981,793
1,355,182
(16,358,420)
(24,120,745)
40,590,251
2,204,165
(15,321,932)
(32,863,490)
108,365,625
1,278,879
(16,358,420)
(23,996,615)
74,954,844
1,065,659
(15,209,392)
(32,987,620)
48,857,810
(5,391,006)
69,289,469
27,823,491
2,583,942
(2,528,646)
2,583,942
(2,528,646)
15 (100,455,277)
(88,157,281)
(92,442,318)
(87,199,086)
462,858
(20,025,037)
377,459
(9,548,251)
14,018
(19,946,111)
130,794
(9,423,290)
216,000
-
-
216,000
-
(15,000,000)
-
7,043,390
-
-
14,700,205
(6,925,103)
-
-
-
-
957,588
(27,799,795)
(35,000,000)
13 (197,200,000)
(28,200,000)
(197,200,000)
(1,200,000)
71,443,585
1,000,000
50,000,000
-
(228,273,724)
(125,980,844)
(284,574,264)
(150,220,228)
- deposits for goods purchases
- value added tax
- other current assets*, **
- other non-current assets**
- trade and other accounts payable*, **
- other current liabilities*
- employee benefit obligations paid
- other non-current liabilities
Cash generated from operating activities before
interest income received, finance costs paid and
income tax paid
Interest income received
Finance costs paid - interest expense
Income tax paid
Net cash generated (payments) from operating activities
Cash flows from investing activities
(Increase) decrease in restricted cash deposits at
financial institutions
Cash paid for purchases of property, plant and equipment*, **
Cash received from disposals of property, plant and
equipment
Cash paid for purchases of intangible assets
Cash received from discount on intangible asset
acquisition
Cash paid for short-term loans to subsidiary
Cash received from short-term loans to individual
and other company
Cash paid for short-term loans to an associate
and other related party
Increase in non-controlling interest
Net cash received (paid) for investment in subsidiary*,
**
Cash paid for available-for-sale investments
Cash received from disposal of available-for-sale
investments
Net cash payments from investing activities
25
16
12
13
* These transactions included the changes of TV Direct (Malaysia) Sdn. Bhd., subsidiary of TV Direct Indochina Company Limited,
since 30 January 2012, the date when its status becomes a subsidiary.
** These transactions included the changes of TVDI Vietnam Co., Ltd., subsidiary of TV Direct Indochina Company Limited,
since 11 October 2012, the date when its status becomes a subsidiary.
Statements of Cash Flows
For the year ended 31 December 2013
Consolidated
Notes
2013
Baht
Company
2012
Baht
2013
Baht
2012
Baht
Cash flows from financing activities
Short-term borrowings from financial institution-proceeds
21
719,497,949
1,338,054,307
719,497,949
1,337,844,307
Short-term borrowings from financial institution-repayments
21
(848,414,661)
(1,287,372,792)
(848,414,661)
(1,287,162,792)
Repayments for short-term borrowings from related parties*
12
-
(11,180,698)
-
31,930,000
Long-term borrowings from financial institutions - proceeds
22
68,070,000
31,930,000
68,070,000
Long-term borrowings from financial institutions - repayments
22
(24,093,885)
(7,473,000)
(24,093,885)
(7,473,000)
Cash paid for liability under finance lease agreements
23
(7,113,715)
(3,469,241)
(7,113,715)
(3,469,240)
-
10,090,800
-
-
Cash received from increase in share capital
26
422,999,964
120,246,000
422,999,964
120,246,000
Cash paid for IPO process
26
-
(3,607,380)
-
(3,607,380)
Cash paid for dividend paid
27
Cash received from increase in share capital in subsidiary
(70,355,343)
(50,534,273)
(70,355,343)
(50,534,273)
260,590,309
136,683,723
260,590,309
137,773,622
Translation foreign currency financial statements
(2,045,475)
1,064,449
-
-
Net increase (decrease) in cash and cash equivalents
79,128,920
6,376,322
45,305,514
15,376,885
Net cash receipts from financing activities
Cash and cash equivalents - beginning balance
Cash and cash equivalents - ending balance
8
47,326,030
40,949,708
43,862,599
28,485,714
126,454,950
47,326,030
89,168,113
43,862,599
Non-cash transactions:
Transfer loan to related persons to investment in subsidiary
12
-
1,350,000
-
-
Transfer short-term loan to a subsidiary to investment in subsidiary
12
-
8,695,565
-
15,000,000
Transfer of inventory to fixed assets
15
690,206
39,363
690,206
39,363
20, 27
206,023
63,227
206,023
63,227
9
781,760
-
-
-
Additional information
Dividend payable
Outstanding receivable arising from disposal of
fixed assets as at 31 December
Outstanding payable arising from purchases
of fixed assets as at 31 December
1,013,374
3,789,685
1,013,374
3,789,685
Outstanding retention payable as at 31 December
24
231,115
1,400,909
231,115
1,400,909
Interest expense capitalised to fixed assets
15
1,658,344
-
1,658,344
-
940,010
13,220,277
940,010
13,220,277
Outstanding liability under finance lease agreement
arising from purchase of fixed assets as of 31 December
* These transactions included the changes of TV Direct (Malaysia) Sdn. Bhd., subsidiary of TV Direct Indochina Company Limited, since
30 January 2012, the date when its status becomes a subsidiary.
** These transactions included the changes of TVDI Vietnam Co., Ltd., subsidiary of TV Direct Indochina Company Limited, since 11
October 2012, the date when its status becomes a subsidiary.
The accompanying notes on pages 10 to 55 are an integral part of the financial statements.
130
TV Direct Public Company Limited
131
Notes to the Consolidated and Company Financial Statements
For the year ended 31 December 2013
1
General information
TV Direct Public Company Limited (“the Company”) was incorporated as a limited company in Thailand on
21 April 1999 and subsequently registered to convert to a public company limited on 4 May 2011. As a result, the
Company registered to change its name from “TV Direct Company Limited” to “TV Direct Public Company Limited”
with the Ministry of Commerce.
The address of its registered office is at 25 Watcharaphol Road, Tha-Raeng Sub-district, Bang Khen District,
Bangkok 10230. As at 31 December 2013, the Company has 96 distribution centers (2012 : 87 distribution centers), which
registered to the Ministry of Commerce, in Bangkok and other provinces.
The Company is listed on the Stock Exchange of Thailand. For reporting purposes, the Company and its
subsidiaries are referred to as “the Group”.
The principal business operations of the Group are sales of goods and services through various
marketing channels including providing, producing TV programmes and selling of airtime for advertising.
These consolidated and company financial statements have been approved by the Board of Directors on 24
February 2014.
2
Accounting policies
The principal accounting policies adopted in the preparation of these consolidated and company financial
statements are set out below:
2.1 Basis of preparation
The consolidated and company financial statements have been prepared in accordance with Thai
generally accepted accounting principles under the Accounting Act B.E. 2543, being those Thai Financial Reporting
Standards issued under the Accounting Profession Act B.E.2547, and the financial reporting requirements of the
Securities and Exchange Commission under Securities and Exchange Act.
The consolidated and company financial statements have been prepared under the historical cost
convention except available-for-sale investments and employee benefit obligations as disclosed in the accounting
policies below.
The preparation of financial statements in conformity with Thai generally accepted accounting principles
requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in
the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or
complexity, or areas where assumptions and estimates are significant to the consolidated and company financial
statements are disclosed in Note 4.
An English version of the consolidated and company financial statements have been prepared from the
statutory financial statements that are in the Thai language. In the event of a conflict or a difference in interpretation
between the two languages, the Thai language statutory financial statements shall prevail.
2.2 New accounting standards, new financial reporting standards and interpretations and amendments
to new accounting standards and new financial reporting standards.
New accounting standard, new financial reporting standards and amendment to accounting standard which
are effective for the period beginning on or after 1 January 2013 and are relevant and have an impact to the Group
are as follows:
TAS 12
TAS 21(Revised 2009)
TFRS 8
Income Taxes
The Effects of Changes in Foreign Exchange Rates
Operating Segments
TAS 12 requires tax expenses to be recognised for current and deferred tax. New accounting
policy of income taxes is provided in Note 2.14 and the significant impact to the Group is described in Note 6.
132
TAS 21(Revised 2009) requires the Group to determine the functional currency which is the currency
of the primary economic environment in which the entity operates. The Group assessed and concluded that
Thai Baht is the Group’s functional currency. As a consequence, applying TAS 21 (Revised 2009)
has no impact to assets, liabilities and retained earnings. New accounting policy is are described in
Note 2.4. TFRS 8 requires the operating segment to be described in the same manner as internal reporting
used by the chief operating decision-maker. New accounting policy is are described in Note 2.22.
The impact to the Group in applying TFRS 8 is only on a disclosure.
Amendments to accounting standards, and financial reporting standards, interpretations of financial
reporting standards and accounting standards, and new accounting standards that are relevant and are
not yet effective:
Amendments to accounting standards and financial reporting standards effective for the periods beginning
on or after 1 January 2014
TAS 1 (Revised 2012)
TAS 7 (Revised 2012)
TAS 12 (Revised 2012)
TAS 17 (Revised 2012)
TAS 21 (Revised 2012)
TAS 24 (Revised 2012)
TAS 28 (Revised 2012)
TAS 31 (Revised 2012)
TAS 34 (Revised 2012)
TAS 36 (Revised 2012)
TAS 38 (Revised 2012)
TFRS 2 (Revised 2012)
TFRS 3 (Revised 2012)
TFRS 8 (Revised 2012)
TAS 1 (revised 2012) clarifies that conversion features that are at the holder’s discretion do not impact
the classification of the liability component of the convertible instrument. TAS 1 also explains that, for each
component of equity, an entity may present the breakdown of other comprehensive income either in the
statement of changes in equity or in the notes to the financial statements. The Group’s management assessed
that the revised standard has no impact to the Group’s financial statements.
TAS 7 (revised 2012) clarifies that only expenditures that result in a recognized asset in the statement
of financial position are eligible for classification as investing activities. The Group’s management assessed
that the revised standard has no material impact to the Group’s financial statements.
TAS 12 (revised 2012) amends an exception to the existing principle for the measurement of deferred
tax assets or liabilities on investment property measured at fair value. TAS 12 currently requires an entity
to measure the deferred tax relating to an asset depending on whether the entity expects to recover the
carrying amount of the asset through use or sale. This amendment therefore adds the rebuttable presumption
that the carrying amount of an investment property measured at fair value is entirely recovered through sale.
As the result of the amendment, TSIC 21 - Income tax - recovery of revalued non-depreciable assets is
incorporated in to TAS 12 (revised 2012). The Group’s management assessed that the revised standard
has no material impact to the Group’s financial statements.
TAS 17 (revised 2012) deletes the guidance for a lease of land with an indefinite useful life to be classified as
an operating lease. The standard has been amended to clarify that when a lease includes both land and
buildings, classification as a finance or operating lease is performed separately in accordance with TAS 17’s
general principles. The Group’s management assessed that the revised standard has no material impact
to the Group’s financial statements.
TAS 21 (revised 2012) clarifies the method of recording cumulative amount of the exchange different
relating to disposal or partial disposal of a foreign operation. This matter should be adjusted prospectively
effective for the period begins on or after 1 January 2011. The Group’s management assessed that the
Presentation of financial statements
Statement of Cash Flows
Income taxes
Leases
The Effects of Changes in Foreign Exchange Rates
Related party disclosures
Investments in Associates
Interest in Joint Ventures
Interim financial reporting
Impairment of assets
Intangible Assets
Share-based payment
Business Combinations
Operating Segments
TV Direct Public Company Limited
133
revised standard has no impact to the Group’s financial statements.
TAS 24 (revised 2012) removes the requirement for government-related entities to disclose details of all
transactions with the government and other government-related entities. It also clarifies and simplifies the
definition of related parties. The Group’s management assessed that the revised standard has no impact
to the Group’s financial statements.
TAS 28 (revised 2012) clarifies that when an entity moves from an equity accounting to cost accounting
in the separate financial statements, the standard requires this to be adjusted retrospectively. An entity losses
significant influence, the remaining interest of investment should be valued at fair value. This matter should
be adjusted prospectively effectively for the period begins on or after 1 Jan 2011. The Group’s management
assessed that the revised standard has no material impact to the Group’s financial statements.
TAS 31 (revised 2012) clarifies that when an entity moves from an equity accounting to cost accounting
in the separate financial statements, the standard requires this to be adjusted retrospectively. An entity losses
of joint control in its interest in joint control, the remaining interest of investment should be valued at fair value. ,
This matter should be adjusted prospectively effectively for the period begins on or after
1 Jan 2011. The Group’s management assessed that the revised standard has no material impact to
the Group’s financial statements.
TAS 34 (revised 2012) emphasises the existing disclosure principles for significant event and transactions.
Additional requirements cover disclosure of changes in fair value measurements (if significant), and the need
to update relevant information from the most recent annual report. The Group’s management assessed
that the revised standard has no material impact to the Group’s financial statements.
TAS 36 (revised 2012) clarifies that goodwill being allocated to cash-generating units shall not be larger
than an operating segment before aggregation as defined under TFRS 8 - Operating Segments. The Group’s
management assessed that the revised standard has no material impact to the Group’s financial statements.
TAS 38 (revised 2012) Clarifies that an intangible asset acquired in a business combination might be
separable, but only together with a related contract, identifiable asset or liability. In such cases, intangible
asset is recognised separately from goodwill, but together with related item. Intangible assets are recognised
as a single asset provided the individual assets have similar useful lives. The Group’s management assessed
that the revised standard has no impact to the Group’s financial statements.
TFRS 2 (revised 2012) expands the scope to cover classification and accounting of both cash-settled and
equity-settled share-based payment transactions in group situation. The Group’s management assessed
that the revised standard has no material impact to the Group’s financial statements.
TFRS 3 (revised 2012) amends the measurement required for non-controlling interests. The choice of
measuring non-controlling interests at fair value or at the proportionate share of the acquiree’s net assets
applies only to instruments that represent present ownership interests and entitle their holders to a
proportionate share of net assets in the event of liquidation. All other component of non-controlling interests
is measured at fair value unless another measurement basis is required by TFRS. The application guidance
in TFRS 3 (revised 2012) also applies to all share-based payment transactions that are part of a business
combination, including unreplaced and voluntarily replaced share-based payment awards. The Group’s
management assessed that the revised standard has no material impact to the Group’s financial statements.
TFRS 8 (revised 2012) clarifies that an entity is required to disclose a measure of segment assets only if
the measure is regularly reported to the chief operating decision-maker. The Group’s management assessed
that the revised standard has no impact to the Group’s financial statements.
Interpretations of financial reporting standards and accounting standard effective for the periods beginning
on or after 1 January 2014
TFRIC 1 Changes in existing decommissioning, restoration and similar liabilities
TFRIC 4 Determining whether an Arrangement contains a Lease
TFRIC 13Customer Loyalty Programmes
TFRIC 17Distributions of non-cash assets to owners
TSIC 27 Evaluating the substance of transactions in the legal form of a lease
TSIC 32 Intangible assets - Web Site Costs
TFRIC 1 provides guidance on accounting for changes in the measurement of an existing decommissioning,
restoration and similar liability that results from changes in estimated timing or amount of the outflow of
resources embodying economic benefits required to settle the obligation, or a change in the discount rate.
The Group’s management assessed that the interpretation has no material impact to the Group’s
financial statements.
TFRIC 4 requires the determination of whether an arrangement is or contains a lease to be based on
the substance of the arrangement. It requires an assessment of whether: (a) fulfilment of the arrangement
is dependent on the use of a specific asset or assets (the asset); and (b) the arrangement conveys a right
to use the asset. The Group’s management assessed that the interpretation has no material impact to
the Group’s financial statements.
TFRIC 13 clarifies that where goods or services are sold together with a customer loyalty incentive (for
example, loyalty points or free products), the arrangement is a multiple-element arrangement, and the
consideration received or receivable from the customer is allocated between the components of the
arrangement using fair values. The Group’s management is currently assessing the impact of applying
this interpretation.
TFRIC17 provides guidance on accounting for the distributions of non-cash assets to owners acting in
their capacity as owners. The interpretation addresses the issues on the dividend payable recognition
and measurement and the accounting for any difference between the carrying amount of the assets
distributed and the carrying amount of the dividend payable when an entity settles the dividend payable.
The Group’s management assessed that the interpretation has no impact to the Group’s financial statements.
TSIC27 provides guidance on evaluating the substance of transactions in the legal form of a lease
between the entity and the investor whether a series of transactions is linked and should be accounted for
as one transaction and whether the arrangement meets the definition of a lease under TAS17 “Leases”.
The accounting shall reflect the substance of the arrangement. The Group’s management assessed that
the interpretation has no impact to the Group’s financial statements.
TSIC 32 provides guidance on the internal expenditure on the development and operation of the entity
web site for internal or external access. The entity shall comply with the requirements described in TAS38
“Intangible Assets”. The Group’s management assessed that the interpretation has no material impact to
the Group’s financial statements.
2.3 Group Accounting - Investments in subsidiaries
a) Subsidiaries
Subsidiaries are all entities (including special purpose entities) over which the Group has the power to govern
the financial and operating policies generally accompanying a shareholding of more than one-half of the voting rights.
The existence and effect of potential voting rights that are currently exercisable or convertible are considered when
assessing whether the Group controls another entity including the potential voting rights from other companies.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are
de-consolidated from the date that control ceases.
The Group uses the acquisition method of accounting to account for business combinations. The
consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities
incurred and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset
or liability resulting from a contingent consideration arrangement. Acquisition-related costs are expensed as
incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination
are measured initially at their fair values at the acquisition date. On an acquisition-by-acquisition basis, the Group
recognises any non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s
proportionate share of the acquiree’s net assets.
Investments in subsidiaries are accounted for at cost less impairment. Cost is adjusted to reflect changes
in consideration arising from contingent consideration amendments. Cost also includes direct attributable costs of
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TV Direct Public Company Limited
135
investment.
The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the
acquisition-date fair value of any previous equity interest in the acquiree over the net value of the Group’s share of
the identifiable net assets and liabilities acquired is recorded as goodwill. If this is less than the fair value of the net
assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognised directly in profit or
loss.
Intercompany transactions, balances and unrealised gains or loss on transactions between Group companies
are eliminated. Unrealised losses are also eliminated. Accounting policies of subsidiaries have been changed where
necessary to ensure consistency with the policies adopted by the Group.
A list of the Group’s principal subsidiaries is set out in Note 12.
b) Transactions and non-controlling interests
The Group treats transactions with non-controlling interests as transactions with equity owners of the Group.
For purchases from non-controlling interests, the difference between any consideration paid and the relevant share
acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to
non-controlling interests are also recorded in equity.
When the Group ceases to have control or significant influence, any retained interest in the entity is
re-measured to its fair value, with the change in carrying amount recognised in profit or loss. The fair value is the initial
carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture
or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that
entity are accounted for as if the Group had directly disposed of the related assets or liabilities.
If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate
share of the amounts previously recognised in other comprehensive income is reclassified to profit or loss where
appropriate.
2.4 Foreign currency translation
(a) Functional and presentation currency
Items included in the financial statements of each of the group’s entities are measured using the currency
of the primary economic environment in which the entity operates (‘the functional currency’). The consolidated
financial statements are presented in Thai Baht, which is the Group’s functional and the group’s presentation
currency.
(b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing
at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses
resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary
assets and liabilities denominated in foreign currencies are recognised in the profit or loss.
When a gain or loss on a non-monetary item is recognised in other comprehensive income, any exchange
component of that gain or loss is recognised in other comprehensive income. Conversely, when a gain or loss on
a non-monetary item is recognised in profit and loss, any exchange component of that gain or loss is recognised
in profit and loss.
(c) Group companies
The results and financial position of all the group entities (none of which has the currency of a hyper-inflationary
economy) that have a functional currency different from the presentation currency are translated into the presentation
currency as follows:
•Assets and liabilities for each statement of financial position presented are translated at the closing rate
at the date of that statement of financial position;
•Income and expenses for each statement of comprehensive income are translated at average exchange
rates; and
•All resulting exchange differences are recognised as a separate component of equity.
2.5 Cash and cash equivalents
Cash comprises cash on hand, deposit held at call with banks but exclude deposits with banks that are held
to maturity, certificates of deposit issued by commercial banks and financial institutions, and restricted deposits.
Cash equivalents comprise short-term highly liquid investments with maturities of three months or less from the date
of acquisition.
In the consolidated and company statements of cash flows, cash and cash equivalents includes cash on
hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three
months or less.
2.6 Trade accounts receivable
Trade accounts receivable are recognised initially at original invoice amount and subsequently measured at the
remaining amount less any allowance for doubtful receivables based on a review of all outstanding amounts at the
year-end. The amount of the allowance is the differences between the carrying amount of receivable and the amount
expected to be collected. Bad debts are recognised in the profit or loss within selling & marketing costs.
2.7 Inventories
Inventories are presented in the statement of financial position at the lower of cost or net realisable value.
Cost is determined on the first-in, first-out method. The cost of purchase comprises both the purchase price and
costs directly attributable to the acquisition of the inventory, such as import duties and transportation charge, less all
attributable discounts. Net realisable value is the estimate of the selling price in the ordinary course of business,
less the estimated costs necessary to make the sale. Allowance is made, where necessary, for obsolete,
slow-moving, defective and excessive inventories.
2.8 Available-for-sale investments
Investments intended to be held for an indefinite period of time, which may be sold in response to liquidity
needs or changes in interest rates, are classified as available-for-sale; and are included in non-current assets unless
management has expressed the intention of holding the investment for less than 12 months from
the statement of financial position date or unless they will need to be sold to raise operating capital, in which case
they are included in current assets.
Available-for-sale investments are initially recognised at cost, which is equal to the fair value of consideration
paid plus transaction cost.
Available-for-sale investments are subsequently measured at fair value. The fair value of investments is based
on quoted bid price at the close of business on the statement of financial position date by reference to the Stock
Exchange of Thailand. The unrealised gains and losses of available for sale investments are recognised in equity.
A test for impairment is carried out when there is a factor indicating that an investment might be impaired.
If the carrying value of the investment is higher than its recoverable amount, impairment loss is charged to the
statement of comprehensive income.
On disposal of an investment, the difference between the net disposal proceeds and the carrying amount is
charged or credited to the statement of comprehensive income. When disposing of part of the Company’s holding
of a particular investment in debt or equity securities, the carrying amount of the disposed part is determined by
the weighted average carrying amount of the total holding of the investment.
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2.9 Property, plant and equipment
TV Direct Public Company Limited
137
Land is shown at fair value less allowance for impairment of asset. Fair value is based on valuations from
external independent valuers which are conducted every 3 - 5 years. Buildings and equipments are stated at
historical cost less accumulated depreciation and allowance for impairment of assets. Initial cost included other
direct cost related to assets acquisition.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and
the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other
repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.
Increases in the carrying amount arising on revaluation are credited to revaluation surplus of asset under
the shareholders’ equity. Decreases that offset previous increases of the same asset are charged against
the revaluation surplus; all other decreases are charged to the statement of comprehensive income. Each year
the difference between depreciation based on the revalued carrying amount of the asset (the depreciation charged
to the statement of comprehensive income) and depreciation based on the asset’s original cost is transferred from
revaluation surplus to the retained earnings.
Land has not been depreciated. Depreciation of other assets is calculated using the straight-line method to
write off the cost of each asset, except land which is considered to have an indefinite useful life, to their residual value
over the estimate useful lives as follows:
Land improvements 5
Years
Buildings20
Years
Buildings improvements5
Years
Furniture, fixtures and office equipment 5
Years
Computer equipment 5
Years
Motor vehicles5
Years
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each
reporting period.
Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written down
immediately to its recoverable amount.
Gains and losses on disposal of property, plant and equipment are calculated by comparing net
proceeds from disposal of assets with assets’ carrying amount and are taken into other income and other expenses,
respectively, in the statement of comprehensive income. On disposal of revalued assets, the related revaluation
surplus is transferred to retained earnings.
2.10 Intangible assets
Computer software
Costs associated with maintaining computer software programmes are recognised as an expense as
incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software
products controlled by the Group are recognised as intangible assets when the following criteria are met :
•it is technically feasible to complete the software product so that it will be available for use;
•management intends to complete the software product and use or sell it;
•there is an ability to use or sell the software product;
•it can be demonstrated how the software product will generate probable future economic benefits;
•adequate technical, financial and other resources to complete the development and to use or sell the
software product are available; and
•the expenditure attributable to the software product during its development can be reliably measured.
Directly attributable costs that are capitalised as part of the software product include the software
development employee costs and an appropriate portion of relevant overheads.
Other development expenditures that do not meet these criteria are recognised as an expense as incurred.
Development costs previously recognised as an expense are not recognised as an intangible asset in a subsequent
period.
Computer software development costs recognised as intangible assets are amortised using the straight-line
method over their estimated useful lives, which does not exceed 5 years.
2.11 Impairment of assets
Assets that have an indefinite useful life, for example goodwill, are not subject to amortisation and are
tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment whenever events
or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is
recognised for the amount by which the carrying amount of the assets exceeds its recoverable amount.
The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the
purposes of assessing impairment, assets are grouped at the lowest level for which there are separately
identifiable cash flows. Non-financial assets other than goodwill that suffered an impairment are reviewed for possible
reversal of the impairment at each reporting date.
2.12 Accounting for long-term leases - where a Group Company is the leasee
Finance leases
Leases of assets where the lessee has substantially all the risks and rewards of ownership are classified
as finance leases. Finance leases are capitalised at the inception of the lease at the lower of the fair value of
the leased property or the present value of the minimum lease payments. Each lease payment is allocated to
principal and to finance charges so as to achieve a constant rate on the finance balance outstanding. The
outstanding rental obligations, net of finance charges, are included in other long-term payables. The interest
element of the finance charge is charged to the profit or loss over the lease period. The assets acquired under finance
lease is depreciated over the shorter of the useful life of the asset or lease term.
Operating leases
Leases where the lessor has substantially all the risks and rewards of ownership are classified as operating
leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the
statement of comprehensive income on a straight-line basis over the period of the lease.
2.13 Borrowings
Borrowings are recognised initially at the proceeds received (net of transaction costs incurred). In subsequent
periods, borrowings are stated at amortised cost using the effective yield method. Any difference between proceeds
(net transaction costs) and the redemption value is recognised in the statement of comprehensive income over the
period of the borrowings.
Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent
that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until
the draw-down occurs. To the extent that there is no evidence that it is probable that some or all of the facility
will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the
facility to which it relates.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement
of the liability for at least 12 months after the end of reporting date.
2.14 Current and deferred income taxes
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except
to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case the
tax is also recognised in other comprehensive income or directly in equity, respectively.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted
at the end of reporting period in the countries where the company’s subsidiaries and associates operate and
generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations
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TV Direct Public Company Limited
139
in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis
of amounts expected to be paid to the tax authorities.
Deferred income tax is recognised, using the liability method, on temporary differences arising from
differences between the tax base of assets and liabilities and their carrying amounts in the financial statements.
However, the deferred income tax is not accounted for if it arises from initial recognition of an asset or liability
in a transaction other than a business combination that at the time of the transaction affects neither
accounting nor taxable profitor loss. Deferred income tax is determined using tax rates (and laws) that
have been enacted or substantially enacted by the end of the reporting period and are expected to apply when
the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred income tax assets are recognised only to the extent that it is probable that future taxable profit
will be available against which the temporary differences can be utilised. Deferred income tax is provided on
temporary differences arising from investments in subsidiaries and associates, except where the timing of
the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will
not reverse in the foreseeable future.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current
tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes
levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an
intention to settle the balances on a net basis.
2.15 Employee benefits
Group companies operate various pension schemes. The schemes are generally funded through payments
to trustee-administered funds. The Group has both defined benefit and defined contribution plans.
•For defined contribution plans, the Group pays contributions to publicly or privately administered pension
insurance plans on a mandatory, contractual or voluntary basis. The Group has no further payment obligations once
the contributions have been paid. The contributions are recognised as employee benefit expense when they are
due.
•A defined benefit plan is a pension plan that is not a defined contribution plan. Typically defined benefit plans
define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more
factors such as age, years of service and compensation.
The liability recognised in the statement of financial position in respect of defined benefit pension plans is the
present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets,
together with adjustments for unrecognised past-service costs. The defined benefit obligation is calculated annually
by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation
is determined by discounting the estimated future cash outflows using market yield of government bonds that are
denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the
terms of the related pension liability.
Actuarial gains and losses arising from experience adjustments and changed in actuarial assumptions
are charged or credited to equity in other comprehensive income in the period in which they arise.
Past-service costs are recognised immediately in income, unless the changes to the pension plan are
conditional on the employees remaining in service for a specified period of time (the vesting period). In this case, the
past-service costs are amortised on a straight-line basis over the vesting period.
The Group recognises, the obligation determined as at 31 December 2010 on a straight-line basis over
a five-year period. The increase of the liability within the current year is fully recognised in the current period financial
statements (statements of financial position and statement of comprehensive income). The practice is in compliance
with the provision in the Thai Accounting Standard no.19 dealing with accounting for employee benefits.
2.16 Financial assets and financial liabilities
Financial assets carried on the statement of financial position include cash and cash equivalents, trade
accounts receivable and other accounts receivable, short-term loans to other company, associate, and related
person, certain parts of other current assets and restricted deposits at financial institutions and other non-current
assets. Financial liabilities carried on the statement of financial position include short-term loans from financial
institutions, trade accounts payable and other accounts payable certain parts of other current liabilities, long-term
loans from financial institutions and liability under finance lease agreements. The particular recognition methods
adopted are disclosed in the individual accounting policy statements associated with each item.
2.17 Provisions - general
Provisions are recognised when: the Group has a present legal or constructive obligation as a result of past
events; it is probable that an outflow of resources will be required to settle the obligation; and the amount has been
reliably estimated.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is
determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an
outflow with respect to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of the expenditures expected to be required to settle the
obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks
specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense.
2.18 Share-based payment
The Group operates a number of equity-settled, share-based compensation plans, under which the entity
receives services from employees as consideration for equity instruments (options) of the Group. The fair value of
options on the grant date is recognised as expense over the vesting period.
When the options are exercised, the proceeds received net of any directly attributable transaction costs are
credited to share capital (nominal value) and share premium when the options are exercised.
2.19 Revenue recognition
Revenue comprises the fair value for consideration received or receivable for the sale of goods and service
net of output tax, rebates and discounts. Revenue from sale of goods is recognised when significant risks and
reword of ownership of goods are transferred to the buyer, services income is recognised as revenue in the period
in which they are rendered.
Other revenues earned by the Company are recognised on the following basis:
Interest income is recognised on a time proportion basis, taking account of the principal outstanding and the
effective rate over the period to maturity, when it is determined that such income will accrue to the Company.
2.20 Finance costs
Finance costs comprise interest expense from bank loans and liabilities under finance lease contracts.
2.21 Dividends
Dividends and interim dividends are recorded in the consolidated and company’s financial statements in the
period in which they are approved by the shareholders and board of directors, respectively.
2.22 Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and
assessing performance of the operating segments, has been identified as the Board of Directors that makes
strategic decisions.
140
3
Financial risk management
3.1 Financial risk factors
TV Direct Public Company Limited
141
The Group’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value
interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The Group’s overall risk
management programme focuses on the unpredictability of financial markets and seeks to minimise potential
adverse effects on the Group’s financial performance.
Risk management is carried out by the finance department under policies approved by the Board of
Directors. The finance department identifies, evaluates and hedges financial risks in close co-operation with the Group’s
operating units. The Board provides written principles for overall risk management, as well as written policies
covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative and
non-derivative financial instruments, and investment excess liquidity.
3.1.1 Foreign exchange risk
The Group operates internationally and is exposed to foreign exchange risk arising from various currency
exposures. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities and
net investments in foreign operations.
The Group also hedges the foreign currency exposure of its contract commitments to purchase certain goods
from overseas. The forward contracts used in its programme mature in 1 - 4 months or less, consistent with
the related purchase commitments.
3.1.2 Interest rate risk
The Group’s income and operating cash flows are substantially independent of changes in market
interest rates. All interest rate derivative transactions are subject to approval by the Finance Director before execution.
The Group has no significant interest-bearing assets.
3.1.3 Credit risk
The Group has no significant concentrations of credit risk. The Group has policies in place to ensure that sales
of products and services are made to customers with an appropriate credit history. Derivative counterparties and
cash transactions are limited to high credit quality financial institutions. The Group has policies that limit the amount
of credit exposure to one financial institution.
3.1.4 Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability
of funding through an adequate amount of committed credit facilities, and the ability to close out market positions.
Due to the dynamic nature of the underlying business, the Group Treasury aims at maintaining flexibility in funding by
keeping committed credit lines available.
3.2 Fair value estimation
When a financial instrument is traded in an active market, its quoted market price provides the best evidence
of fair value. The quoted market price for an asset held or liability to be issued is usually the current bid price and,
for an asset to be acquired or liability held, it is the current offer or asking price. When the current bid and offer prices
are unavailable, the price of the most recent transaction may provide evidence of the current fair value provided
that there has not been a significant change in economic circumstances between the transaction date and the
reporting date. When the Group has matching asset and liability positions, it may appropriately use mid-market
prices as a basis for establishing fair values.
When there is infrequent activity in a market, the market is not well established or small volumes are traded
relative to the number of trading units of a financial instrument to be valued, quoted market prices may not be
indicative of the fair value of the instrument. In these circumstances, as well as when a quoted market price is
not available, estimation techniques may be used to determine the fair value with sufficient reliability to satisfy
the Group. Techniques that are well established in financial markets include reference to the current market value
of another instrument that is substantially the same, discounted cash flow analysis and option pricing models.
In applying discounted cash flow analysis, an enterprise uses a discount rate equal to the prevailing market rate
of interest for financial instruments having substantially the same terms and characteristics, including the
creditworthiness of the debtor, the remaining term over which the contractual interest rate is fixed, the remaining
term for repayment of the principal and the currency in which payments are to be made.
The fair values less any estimated credit adjustments for financial assets and liabilities with a maturity of
less than one year are assumed to approximate their fair values. The fair value of financial liabilities for disclosure
purposes is estimated by discounting the future contractual cash flows at the current market interest rate available
to the Group/Company for similar financial instruments.
Information on the fair values of borrowings is included in Note 39.
4
Critical accounting estimates and judgements
Estimates and judgements are continually evaluated and are based on historical experience and other factors,
including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will,
by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk
of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are
outlined below.
(a) Employee benefit obligations
The present value of the employee benefit obligations depends on a number of factors that are determined on
an actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) for
employee benefits include the discount rate. Any changes in these assumptions will have an impact on the carrying
amount of employee benefit obligations.
The Group determines the appropriate discount rate at the end of each year. This is the interest rate that
should be used to determine the present value of estimated future cash outflows expected to be required to settle
the employee benefit obligations. In determining the appropriate discount rate, the Group considers the market yield
of government bonds that are denominated in the currency in which the benefits will be paid, and that have terms
to maturity approximating the terms of the related employee benefit liability.
Other key assumptions for employee benefit obligations are based in part on current market conditions.
Additional information is disclosed in Note 25.
5
Capital risk management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going
concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal
capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, and issue new shares of sell assets to reduce debt.
6
Adopt new accounting standard and change in accounting policy
Adopt new accounting standard
During the year ended 31 December 2013, the Company has adopted the TAS 12 that is effective in Thailand
since 1 January 2013.
The Group has adopted these standards by applying retrospective adjustments. The effects of the changes to
the Company’s statement of financial position as at 31 December 2012 and statement of comprehensive income for
year ended 31 December 2012 and unappropriated retained earnings as at 1 January 2012 and 2013 are as follows:
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TV Direct Public Company Limited
143
Consolidated
As previously
Increase
After
reported
(decrease) adjustment
Baht
Baht
Baht
Retained earnings - unappropriated as at 1 Jnuary 2012 35,690,22310,660,62546,350,848
Statement of financial position as at 31 December 2012
- Deferred income tax assets (net)
-
3,469,158
3,469,158
- Surplus from land revelation (net)
31,645,490
(6,329,098)
25,316,392
- Gain on measurement on available-for-sale investments (net)
59,178
(11,836)
47,342
Statement of comprehensive income for the year-ended
31 December 2012
- Income tax
26,914,238
850,533
27,764,771
- Profit for the year
47,923,535
(850,533)
47,073,002
- Total comprehensive income for the year
49,047,162
(862,369)
48,184,793
- Basic earnings per share
0.1476
(0.0025)
0.1451
Retained earnings - unappropriated as at 1 January 2013
30,210,080
9,810,092
40,020,172
Company
As previously
Increase
After
reported
(decrease) adjustment
Baht
Baht
Baht
Retained earnings - unappropriated as at 1 January 2012 43,521,47510,404,65853,926,133
Statement of financial position as at 31 December 2012
- Deferred income tax assets (net)
3,281,549
3,281,549
- Surplus from land revelation (net)
31,645,490
(6,329,098)
25,316,392
- Gain on measurement on available-for-sale investments (net)
2,265
(453)
1,812
Statement of comprehensive income for the year-ended
31 December 2012
- Income tax
26,914,238
793,558
27,707,796
- Profit for the year
85,544,875
(793,558)
84,751,317
- Total comprehensive income for the year
85,547,140
(794,011)
84,753,129
- Basic earnings per share
0.2534
(0.0023)
0.2511
Retained earnings - unappropriated as at 1 January 2013
73,767,938
9,611,100
83,379,038
Change in accounting policy
During the year ended 31 December 2013, the Group has changed the accounting policy of employee
benefits related to the recognition of actuarial gains and losses arising from experience adjustments and changed
in actuarial assumptions which previously charged or credited to profit or loss in the period in which they arise
to equity in other comprehensive income in the period in which they arise.
The Group’s management assessed that the change in accounting policy has no impact to the Group’s operations as the Group never recognised actuarial gains and losses.
144
TV Direct Public Company Limited
Segment assets
Unallocated assets
Consolidated total assets
Segment liabilities
Unallocated liabilities
Consolidated total liabilities
incident at a werehouse
Other income
Selling and administration
Other expenses
Finance costs
Income tax
Net profit for the year
Sales of goods
Cost of goods sold
Gross profit
Service income
Cost of service
Gross profit
Total gross profit
Net compensation income from fire
7 Segment information
Certain part of the consolidated statements of comprehensive income for the years ended 31 December (Baht)
Direct marketing
General marketing
Services
Others
Total
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
31,890,703 28,186,246
33,646,491
3,022,423
2,599,737
71,671,955
80,908,455
11,048,992
12,771,524
29,414,293
1,223,273,966
920,791,489
1,294,945,921 1,001,699,944
552,876,289
663,466,066
552,876,289
663,466,066
19,978,785
12,195,294
(1,280,354,494) (1,167,729,846)
(326,678)
(8,962,215)
(15,593,911)
(16,948,946)
(16,203,152)
(27,764,771)
37,915,601
47,073,002
Certain part of the consolidated statements of comprehensive income for the years ended 31 December (Baht)
Direct marketing
General marketing
Services
Others
Total
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
1,558,971,870 1,607,398,226
375,939,718 365,585,496
- 51,277,217 39,390,094 1,986,188,805 2,012,373,816
(587,175,276) (587,353,536) (173,930,747) (172,627,536)
- (17,511,176) (21,394,885)
(778,617,199)
(781,375,957)
971,796,594 1,020,044,690
202,008,971 192,957,960
- 33,766,041 17,995,209 1,207,571,606 1,230,997,859
23,963,055
35,955,430
- 193,081,858
188,750,795
217,044,913
224,706,225
(6,914,542)
(23,139,830)
- (95,324,278) (176,325,286)
(102,238,820)
(199,465,116)
17,048,513
12,815,600
- 97,757,580
12,425,509
114,806,093
25,241,109
988,845,107 1,032,860,290
202,008,971 192,957,960 97,757,580
12,425,509 33,766,041 17,995,209 1,322,377,699 1,256,238,968
8,037,352
44,518
Segment assets
Unallocated assets
Consolidated total assets
Segment liabilities
Unallocated liabilities
Consolidated total liabilities
incident at a werehouse
Other income
Selling and administration
Other expenses
Finance costs
Income tax
Net profit for the year
Sales of goods
Cost of goods sold
Gross profit
Service income
Cost of service
Gross profit
Total gross profit
Net compensation income from fire
12,195,294
(1,167,729,846)
(8,962,215)
(16,948,946)
(27,764,771)
47,073,002
2012
1,997,525,691
(782,257,454)
1,215,268,237
224,706,225
(199,465,116)
25,241,109
1,256,238,968
44,518
Certain part of the consolidated statements of comprehensive income for the years ended 31 December (Baht)
Direct marketing
General marketing
Services
Others
Total
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
29,414,293
31,890,703 28,186,246
33,646,491
3,022,423
2,599,737
71,671,955
80,908,455
11,048,992
12,771,524
1,223,273,966
972,582,179
1,294,945,921
1,053,490,634
541,751,008
655,659,638
541,751,008
655,659,638
19,978,785
(1,280,354,494)
(326,678)
(15,593,911)
(16,203,152)
37,915,601
Certain part of the consolidated statements of comprehensive income for the years ended 31 December (Baht)
Direct marketing
General marketing
Services
Others
Total
2013
2012
2013
2012
2013
2012
2013
2012
2013
1,531,782,637 1,592,550,101
375,939,718 365,585,496
- 51,277,217 39,390,094
1,958,999,572
(582,201,739) (588,235,033) (173,930,747) (172,627,536)
- (17,511,176) (21,394,885)
(773,643,662)
949,580,898 1,004,315,068
202,008,971 192,957,960
- 33,766,041 17,995,209
1,185,355,910
23,963,055
35,955,430
- 193,081,858
188,750,795
217,044,913
(6,914,542)
(23,139,830)
- (95,324,278) (176,325,286)
(102,238,820)
17,048,513
12,815,600
- 97,757,580
12,425,509
114,806,093
988,845,107 1,032,860,290
202,008,971 192,957,960 97,757,580
12,425,509 33,766,041 17,995,209
1,322,377,699
8,037,352
7 Segment information (Cont’d)
145
8
Cash and cash equivalents
ConsolidatedCompany
2013
2012
2013
2012
Baht
Baht
Baht
Baht
Cash on hand
1,505,758
1,338,169
1,179,415
862,307
Cash at banks - current accounts
21,004,462
13,453,306
18,700,297
11,487,910
- savings accounts
103,944,730
32,534,555
69,288,401
31,512,382
126,454,950 47,326,030 89,168,113 43,862,599
As at 31 December 2013, cash at banks - savings accounts carry interest at the rates of 0.125% - 0.630% per
annum (2012 : 0.125% - 0.75% per annum).
9
Trade and other accounts receivable (net)
ConsolidatedCompany
2013
2012
2013
2012
Baht
Baht
Baht
Baht
Trade accounts receivable
- other
104,987,132
54,801,122
99,475,427
54,470,169
- related parties (Note 37 c))
- 22,002,492
10,682,985
104,987,132 54,801,122 121,477,919 65,153,154
Accounts receivable from trade barter of goods
or service 5,325,778
5,403,497
Posted date cheques
272,102
Other accounts receivable
- other
5,368,965
5,174,901
- related parties (Note 37 c))
781,760
Advance payment
- other
609,620
424,469
- related parties (Note 37 c))
Prepaid expenses
7,383,728
8,743,737
Accrued income
12,127,682
9,343,340
Compensation income from fire incident at a warehouse (Note 30) 6,676,246
82,000,434
143,260,911 166,163,602
Less Allowance for doubtful accounts
- trade accounts receivable (26,693,474)
- accounts receivable from trade
barter goods or service
(5,325,778)
- other accounts receivable
(4,784,704)
106,456,955
146
TV Direct Public Company Limited
5,325,778
-
5,403,497
272,102
5,356,478
740,965
5,174,901
1,386,136
565,096
277,800
6,434,867
12,127,682
407,399
7,924,216
9,343,340
6,676,246
82,000,434
158,982,831
177,065,179
(18,402,207)
(26,693,474)
(18,402,207)
(5,403,497)
(2,734,818)
(5,325,778)
(4,784,704)
(5,403,497)
(2,734,818)
122,178,875
150,524,657
139,623,080
147
9
Trade and other accounts receivable (net) (Cont’d)
Trade accounts receivable classified by aging are as follows:
Consolidated
Company
2013
2012
2013
2012
Baht
Baht
Baht
Baht
Accounts receivable not overdue 35,828,633
24,342,790
37,311,228
28,443,255
Overdue 1 -30 days
16,608,476
7,642,808
17,132,007
9,723,512
31 -60 days
2,241,097
358,754
1,521,118
1,275,438
61 -9 days
589,295
1,258,684
705,494
1,321,744
91 -180 days
15,893,806
2,127,933
18,027,507
2,265,498
181 -365 days
10,138,700
4,193,946
17,943,687
4,278,444
Over 365 days
23,687,125
14,876,207
28,836,878
17,845,263
104,987,132
54,801,122
121,477,919
65,153,154
10 Inventories (net)
Consolidated
Company
2013
2012
2013
2012
Baht
Baht
Baht
Baht
Finished goods
389,687,096
328,642,492
376,407,910
318,111,292
Less Allowance for obsolete and slow-moving
inventories (8,154,488)
(10,934,926)
(7,861,575)
(9,867,494)
Allowance for inventories cost in
excess of net realisable value
(616,330)
(83,024)
(616,330)
(83,024)
380,916,278
317,624,542
367,930,005
308,160,774
Supplies
4,561,902
2,741,387
4,384,016
2,689,133
Goods in transit34,647,576
52,280,583
32,068,348
52,280,583
420,125,756
372,646,512
404,382,369 363,130,490
Inventory with a value of Baht 3,265,894 (2012 : Baht 789,796) is carried at net releasable value, this being
lower than cost.
During the year 2013, the Group and the Company reversal obsolete and slow-moving inventories Baht
2,780,438 and Baht 2,002,919, respectively. Moreover, during the year 2012, there were inventories and supplies
destructed from fire incident at a warehouse value of Baht 81,793,263 and 53,243, respectively (Note 30).
11 Value added tax
Consolidated
Company
2013
2012
2013
2012
Baht
Baht
Baht
Baht
Prepaid output tax
5,139,655
4,870,120
5,129,209
4,870,120
Undue input tax
5,038,185
7,098,610
5,025,536
7,098,610
Value added tax payables
(2,268,497)
(1,402,664)
(3,371,921)
(1,893,647)
7,909,343 10,566,066 6,782,824
10,075,083
148
TV Direct Public Company Limited
Companies name
Hold investments in subsidiaries and sell
household equipment and other
Sell householdequipment and other
Sell goods and services through multiple
marketing channels
JML Direct (Thailand) Co., Ltd.
Shop at Home Co., Ltd.
Nature of business
TV Direct Indochina Company
Limited
Subsidiaries (direct)
Thailand
Thailand
Thailand
Incorporated in
99.99
51.00
99.99
%
-
-
99.99
%
12,500,000
30,000,000
90,000,000
Baht
-
-
90,000,000
Baht
2012
2013
2013
2012
Paid-up share capital
Percentage of
shareholding
The net movement of investments in subsidiaries for the years ended 31 December 2013 and 2012 comprises the
following:
12 Investments in subsidiaries
-
89,100,655
116,900,450
-
89,100,655
Baht
2012
12,499,995
15,299,800
89,100,655
Baht
2013
Cost method
Company
TVDI Vietnam Co., Ltd.
TV Direct (Malaysia) Sdn. Bhd.
TV Direct Lao Co., Ltd.
Direct Response Television Co., Ltd.
Subsidiaries (indirect)
Companies name
Sell household equipment and other
Sell household equipment and other
Sell household equipment and other
Sell household equipment and other
Nature of business
Vietnam
Malaysia
Laos
Cambodia
Incorporated
in
100.00
90.60
96.88
100.00
%
2013
100.00
88.25
95.00
100.00
%
2012
Percentage of
shareholding
6,490,536,000
VND
or equivalent
9,640,800 Baht
13,277,008 Baht
20,000,000 Baht
25,000,000 Baht
8,923,936,000
VND
or equivalent
2,000,000
MYR
or equivalent
14,972,000 Baht
24,477,350 Baht
2,500,000
MYR
or equivalent
500,000
US Dollar
or equivalent
7,719,165 Baht
10,686,547 Baht
800,000
US Dollar
or equivalent
1,000,000,000
KHR
or equivalent
Baht
2012
1,380,000,000
KHR
or equivalent
Baht
2013
Paid-up share capital
The net movement of investments in subsidiaries for the years ended 31 December 2013 and 2012 comprises the
following: (Cont’d)
12 Investments in subsidiaries (Cont’d)
Company
13,277,008
22,682,460
21,456,305
10,686,547
Baht
2013
9,640,800
17,682,460
11,972,075
7,719,165
Baht
2012
Cost method
149
12 Investments in subsidiaries (Cont’d)
The net movement of investments in subsidiaries for the years ended 31 December 2013 and 2012 comprises
the following:
For the years ended
31 December
Company
2013
2012
Baht
Baht
Opening net book value q89,100,655
39,100,655
Cash paid for additional investment in TV Direct Indochina Company Limited
35,000,000
Transferred from short-term loan to a subsidiary to investment in a subsidiary 15,000,000
Cash paid for investment in JML Direct (Thailand) Co., Ltd.
15,299,800
Cash paid for investment in Shop at Home Co., Ltd.
12,499,995
Ending net book value
116,900,450
89,100,655
Investments in subsidiaries (direct)
•TV Direct Indochina Company Limited
As at 5 August 2012, TV Direct Indochina Company Limited increased its share capital from Baht 40 million
to Baht 90 million by issuing 500,000 new ordinary shares of par Baht 100 per share, totalling Baht 50,000,000.
TV Direct Public Company Limited purchased all additional ordinary shares totalling Baht 35,000,000 and convert
short-term loan to TV Direct Indochina Company Limited to investment in subsidiary totalling Baht 15,000,000,
resulting in holding 899,998 shares at par value amounting to Baht 89,999,800 in TV Direct Indochina Company
Limited, by paying for the investment total amounting to Baht 89,100,655, which represents 99.99% of total 900,000
outstanding shares.
•JML Direct (Thailand) Co., Ltd.
As at 12 June 2013, TV Direct Public Company Limited joined with John Mills Limited to establish JML Direct
(Thailand) Co., Ltd. which its nature of business is sell household equipment and others. The Company invested
in JML Direct (Thailand) Co., Ltd. in amount of 152,998 shares from 300,000 shares at par value Baht 100 per share
totalling Baht 15,299,800 which represents 51.00% of total shares.
•Shop at Home Co., Ltd.
As at 26 November 2013, TV Direct Public Company Limited established Shop at Home Co., Ltd. which its
nature of business is sales of goods and services through multiple marketing channels. The Company invested
in Shop at Home Co., Ltd. in amount of 9,999,996 shares from 10,000,000 shares at par value Baht 5 per share
totalling Baht 49,999,980 which represents 99.99% of total shares. Shop at Home Co., Ltd. has called for paidup ordinary share 25% of total shares and the Company has paid totalling Baht 12,499,995 based on percentage
of shareholding.
•Direct Response Television Co., Ltd.
As at 30 July 2012, Direct Response Television Co., Ltd. increased its par value of ordinary shares amounting
to KHR 480,000,000 equivalent to Baht 3,756,665 from KHR 520,000 per share to KHR 1,000,000 per share
for 1,000 outstanding shares totalling KHR 1,000,000,000. TV Direct Indochina Company Limited fully transferred
short-term loans to subsidiaries to ordinary shares in subsidiaries resulting in holding 1,000 shares amounting to
KHR 1,000 million or equivalent to Baht 7,719,165 in Direct Response Television Co., Ltd. which represents 100.00%
of total 1,000 outstanding shares.
As at 16 July 2013, Direct Response Televsion Co.,Ltd increased its share capital from KHR 1,000,000,000
to KHR 1,380,000,000 by increasing par value from KHR 1,000,000 per share to KHR 1,380,000 per share. TV
Direct Indochina Company Limited fully transferred short-term loans to subsidiaries to ordinary shares in subsidiaries
150
TV Direct Public Company Limited
151
amounting to Baht 2,967,382, resulting in holding 1,000 shares amounting to KHR 1,380,000 or equivalent to Baht
10,686,547 which represents 100.00% of total 1,000 outstanding shares.
•TV Direct Lao Company Limited
As at 13 September 2013, TV Direct Lao Company Limited increased its share capital amounting to USD
300,000 or equivalent to Baht 9,484,230 by issuing 30,000 new ordinary shares of par USD 10 per share totalling
USD 800,000 of registered share capital. TV Direct Indochina Company Limited fully transferred short-term loans
to subsidiaries to ordinary shares in subsidiaries resulting in holding 77,500 shares from 80,000 shares amounting
to Baht 21,456,305 which represents 96.88% of total 80,000 outstanding shares.
•TV Direct (Malaysia) Sdn. Bhd.
As at 30 January 2012, Ms. Suraiya Binti Mohd Yasin transferred her 135,000 shares of par MYR 1 per
share or equivalent to Baht 10 per share totalling Baht 1,350,000 which represents 27.00% of total 500,000 shares
outstanding in TV Direct (Malaysia) Sdn. Bhd. to TV Direct Indochina Company Limited so as to settle her
outstanding borrowing of Baht 1,350,000 from TV Direct Indochina Company Limited. This results in increasing
percentage of shareholding of TV Direct Indochina Company Limited in TV Direct (Malaysia) Sdn. Bhd. from 38.00%
to 65.00% of shares outstanding.
The following details are the net carrying value of assets and liabilities of TV Direct (Malaysia) Sdn. Bhd.
as at 30 January 2012, when its value closed at the acquisition date.
Baht
Cash and cash equivalents 1,096,672
Inventories 1,949,947
Other current assets 321,711
Equipment (net) 1,480,886
Accounts payable - related parties (7,740,210)
Other accounts payable (2,023,411)
Short-term borrowings from Director (2,113,201)
Other current liabilities (528,839)
Net assets (liabilities) at 30 January 2012 (date of investment) (7,556,445)
Totalling 65.00% of share capital (4,911,688)
Less Settlement of Ms. Suraiya Binti Mohd Yasin liabilities (1,350,000)
Fair value of equity interest in TV Direct (Malaysia) Sdn. Bhd.
Held before 30 January 2012
Loss from investment in subsidiary (Note 32) (6,261,688)
Cash receipt from investment in subsidiary - TV Direct Indochina Company Limited
1,096,672
Less Cash paid for investment in subsidiary - TV Direct Indochina Company Limited
Net cash received from investment in subsidiary (to statement of cash flows)
1,096,672
As at 27 June 2012, TV Direct (Malaysia) Sdn. Bhd. increased its share capital from MYR 500,000 to MYR
2,000,000 by issuing 1,500,000 new ordinary shares of par MYR 1.00 per share or equivalent to Baht 10 per share
totalling Baht 15,000,000. TV Direct Indochina Company Limited purchased the additional 1,440,000 ordinary
shares resulting in holding 1,765,000 shares amounting to Baht 17,682,460 in TV Direct (Malaysia) Sdn. Bhd. which
represents 88.25% of total 2,000,000 outstanding shares.
As at 15 November 2013, TV Direct (Malaysia) Sdn. Bhd. increased its shares capital from MYR 2,000,000
to MYR 2,500,000 by issuing 500,000 new ordinary shares of par MYR 1 per share or equivalent to Baht 10 per
share totalling Baht 5,000,000. TV Direct Indochina Company Limited fully transferred short-term loans to
subsidiaries to ordinary shares in subsidiaries resulting in holding 2,265,000 shares from 2,500,000 shares
amounting Baht 22,682,460 which represents 90.60% of total shares.
•TVDI Vietnam Co., Ltd.
As at 11 October 2012, TV Direct Indochina Company Limited invested in TVDI Vietnam Co., Ltd. by
acquiring 100 shares of par VND 1,000,000 per share or equivalent to Baht 1,500 per share totalling Baht 150,000
which represents 100.00% of total 100 outstanding shares.
The following details are the net carrying value of assets and liabilities of TVDI Vietnam Co., Ltd. As at
11 October 2012, when its value closed at the acquisition date.
Baht
Cash and cash equivalents10,916
Trade accounts receivable and other accounts receivable
303,178
Inventories 1,903,255
Other current assets (net)
438,017
Equipments (net)85,372
Other non-current assets
314,170
Trade accounts payable and other accounts payable
(7,524,556)
Short-term loan from a related party
(9,067,497)
Net assets (liabilities) at 11 October 2012 (date of investment)
(13,537,145)
Totalling 100.00% of share capital
(13,537,145)
Less Investment in subsidiary payable (150,000)
Fair value of equity interest in TVDI Vietnam Co., Ltd. held before 11 October 2012
Loss from business combination under common control (13,687,145)
On 6 November 2012 TV Direct Indochina Company Limited paid for share capital of Baht 150,000 by pass
through to TVDI Vietnam Co., Ltd. to former shareholder.
Cash receipt from investment in subsidiary - TV Direct Indochina Company Limited
Less Cash paid for investment in subsidiary - TV Direct Indochina Company Limited
Net cash received (paid) from investment in subsidiary (to statement of cash flows) 10,916
(150,000)
(139,084)
As at 11 October 2012, TVDI Vietnam Co., Ltd. increased its share capital from VND 100,000,000 or Baht
150,000 equivalent to VND 6,490,536,000 or Baht 9,640,800 equivalent by increasing par value from VND 1,000,000
per share to VND 64,905,360 per shares. TV Direct Indochina Company Limited made addition payment for all 100
ordinary shares amounting to VND 6,490,536,000 or Baht 9,640,800 equivalent in TVDI Vietnam Co., Ltd which
represents 100% of total outstanding shares. TV Direct Indochina Company Limited settled share payables by
transferred short-term loans to TVDI Vietnam Co., Ltd. totalling Baht 8,695,565 and paid cash in amount of
Baht 795,235 on 6 November 2012.
As at 14 November 2013, TVDI Vietnam Co., Ltd increased its share capital from VND 6,490,536,000
or equivalent to Baht 9,640,800 to VND 8,923,936,000 or equivalent to Baht 13,277,008 by increasing par value from VND 64,905,360 to VND 89,239,360 of total 100 shares. TV Direct Indochina Company Limited transferred short-term loans to subsidiaries to ordinary shares in subsidiaries amounting to Baht 2,845,014 and will pay
by cash amounting to Baht 791,194 totalling Baht 3,636,208 resulting in holding 100 shares totalling Baht
13,277,008 which represents 100.00% of total shares.
152
TV Direct Public Company Limited
-
12,922,964
SCB Treasury Money Plus
Open End Fund (SCBTMFPLUS)
Total
-
12,454,254
Total
116,442
116,4421
2,094,065
Krungsri Star Plus Fund (KFS
PLUS)
2012
Units held
2,631,094
596,394
LH Money Market Fund (LHMM) 10,360,189
2013
-
Finansa Value Plus Fund
(FAM VF)
Securities name
-
2,094,065
974,535
1,087,165
2012
Krungsri Star Plus Fund (KFS
PLUS)
2013
Units held
LH Money Market Fund (LHMM) 10,828,899
Securities name
10.06
10.55
-
10.31
2012
19.10
10.50
-
10.31
2012
Cost
(Baht) per unit
2013
-
-
19.10
10.49
2013
Cost
(Baht) per unit
148,765,173
40,000,000
108,765,173
2013
1,200,000
2012
1,200,000
-
-
-
19.11
10.58
2013
19.11
10.58
2013
-
10.33
2012
Market Price
(Baht) per unit
10.08
10.58
-
10.33
2012
Market Price
(Baht) per unit
Consolidated (Baht)
27,200,000
6,000,000
10,000,000
-
11,200,000
2012
Total cost
Baht
153,584,638
-
-
40,000,000
113,584,638
2013
Total cost
Baht
Consolidated (Baht)
Available-for-sale investments as at 31 December 2013 and 2012 are as follows:
13 Available-for-sale investments
149,635,000
40,023,454
109,611,546
2013
27,259,178
6,012,405
10,021,793
-
11,224,980
2012
1,202,265
-
1,202,265
2012
Market Value
Baht
154,598,313
-
-
40,023,454
114,574,859
2013
Market Value
Baht
878,827
23,454
855,373
2013
59,178
12,405
21,793
-
24,980
2012
2,265
-
2,265
2012
Unrealised profit
(loss) Baht
1,013,675
-
-
23,454
990,221
2013
Unrealised profit
(loss) Baht
153
13 Available-for-sale investments (Cont’d)
The movement of available-for-sale investments for the years ended 31 December 2013 and 2012 are as follows:
Consolidated
2013
2012
Baht
Baht
Opening net book amount
27,259,178
Additions
197,200,000
28,200,000
Disposal (70,815,362) (1,000,000)
Changes in fair value of available-for-sale
investments
954,497
59,178
Ending net book amount
154,598,313
27,259,178
Company
2013
2012
Baht
Baht
1,202,265
197,200,000
1,200,000
(49,643,827)
876,562
2,265
149,635,000
1,202,265
14 Restricted deposits at financial institutions
As at 31 December 2013, restricted deposits at financial institutions represent 3-month to 12-month fixed
deposits with interest rate of 1.75% - 3.00% per annum (2012 : 1.75% - 3.00% per annum). The fixed deposits
are held as collateral against short-term borrowings from financial institutions (Note 21).
154
TV Direct Public Company Limited
-
-
-
-
Transfers in (out)
Transfers from inventory
Disposals- cost
91,700,766
Closing net book value
(500,000)
Allowance for impairment
of assets
91,700,766
-
Accumulated depreciation
Net book value
92,200,766
Cost or revalued amount
Less
As at 31 December 2012
-
-
Depreciation charge (Note 33)
- accumulated depreciation
Write-off - cost
-
-
Additions
- accumulated depreciation
91,700,766
91,700,766
(500,000)
Opening net book value
For the year ended
31 December 2012
Net book value
Allowance for impairment
of assets
92,200,766
-
Cost or revalued amount
Less Accumulated depreciation
As at 1 January 2012
Land
2,436,862
-
(1,034,368)
3,471,230
2,436,862
(617,960)
-
-
-
-
-
-
1,309,790
1,745,032
1,745,032
-
(416,408)
2,161,440
Land
for lease
improvements
15 Property, plant and equipment (net)
47,089,347
-
(7,635,478)
54,724,825
47,089,347
(2,736,241)
-
-
-
-
-
-
-
49,825,588
49,825,588
-
(4,899,237)
54,724,825
Building
11,982,058
-
(20,836,430)
32,818,488
11,982,058
(3,368,315)
-
-
27,581
(32,710)
-
-
657,643
14,697,859
14,697,859
-
(17,495,696)
32,193,555
Building
for lease
improvements
82,347,164
-
(86,018,722)
168,365,886
82,347,164
(20,771,581)
867,043
(993,057)
2,086,658
(2,243,820)
39,363
15,003,723
34,529,760
53,829,075
53,829,075
-
(68,200,842)
122,029,917
Furniture
and fixtures
and office
equipment
Computer
equipment
8,480,434
-
(31,889,954)
40,370,388
8,480,434
(2,670,227)
355,765
(368,028)
1,215,323
(1,215,400)
-
17,738
5,592,584
5,552,679
5,552,679
-
(30,790,815)
36,343,494
Consolidated (Baht)
48,476
-
(1,970,153)
2,018,629
48,476
(91,002)
-
-
79,901
(472,806)
-
-
-
532,383
532,383
-
(1,959,052)
2,491,435
Vehicles
55,484,519
-
-
55,484,519
55,484,519
-
-
-
-
-
-
(15,021,461)
65,315,445
5,190,535
5,190,535
-
-
5,190,535
Construction
in progress
299,569,626
(500,000)
(149,385,105)
449,454,731
299,569,626
(30,255,326)
1,222,808
(1,361,085)
3,409,463
(3,964,736)
39,363
-
107,405,222
223,073,917
223,073,917
(500,000)
(123,762,050)
347,335,967
Total
155
156
TV Direct Public Company Limited
-
Net book value
Allowance for impairment of
assets
Less Accumulated depreciation
Cost or revalued amount
As at 31 December 2012
Closing net book value
Depreciation charge (Note 33)
- accumulated depreciation
Write-off - cost
91,700,766
(500,000)
-
92,200,766
91,700,766
-
-
-
-
Disposal - cost
- accumulated depreciation
-
-
Transfers in (out)
Reclassification (Note 16)
-
Interest expense capitalised
Transfers from inventories
-
91,700,766
Additions
Opening net book value
For the year ended 31 December
2013
Land
97,934,776
(4,090,834)
-
-
-
-
-
-
54,936,263
-
-
47,089,347
Building
4,437,849
-
(2,093,381)
97,934,776
-
(11,726,312)
6,531,230 109,661,088
4,437,849
(1,059,013)
-
-
-
-
-
-
3,060,000
-
-
2,436,862
Land
for lease
improvements
15 Property, plant and equipment (net) (Cont’d)
38,404,819
-
(26,557,839)
64,962,658
38,404,819
(5,721,409)
-
-
-
-
-
-
31,921,480
-
222,690
11,982,058
Building
for lease
improvements
96,632,907
-
(110,926,488)
207,559,395
96,632,907
(27,894,096)
1,213,247
(1,492,150)
1,773,083
(3,065,476)
-
690,206
14,003,123
-
29,057,806
82,347,164
Furniture
and fixtures
and office
equipment
15,377,839
-
(36,629,943)
52,007,782
15,377,839
(4,739,989)
-
-
-
-
-
-
9,782,400
-
1,854,994
8,480,434
Computer
equipment
Consolidated (Baht)
36,135
-
(1,982,494)
2,018,629
36,135
(12,341)
-
-
-
-
-
-
-
-
--
48,476
Vehicles
8,932,189
-
-
8,932,189
8,932,189
-
-
-
-
-
(821,100)
-
(113,703,266)
1,658,344
66,313,692
55,484,519
Construction
in progress
353,457,280
(500,000)
(189,916,457)
543,873,737
353,457,280
(43,517,682)
1,213,247
(1,492,150)
1,773,083
(3,065,476)
(821,100)
690,206
-
1,658,344
97,449,182
299,569,626
Total
Net book value
Allowance for impairment of
assets
Less Accumulated depreciation
Cost or revalued amount
As at 31 December 2012
Closing net book value
Depreciation charge (Note 33)
- accumulated depreciation
Write-off - cost
91,700,766
(500,000)
-
92,200,766
91,700,766
-
-
-
-
-
- accumulated depreciation
Disposal - cost
2,436,862
-
(1,034,368)
3,471,230
2,436,862
(617,960)
-
-
-
-
-
-
-
Transfers in (out)
1,309,790
1,745,032
1,745,032
-
(416,408)
2,161,440
Land
for lease
improvements
-
91,700,766
91,700,766
(500,000)
-
92,200,766
Transfers from inventories
Additions
Opening net book value
For the year ended 31 December
2012
Net book value
Allowance for impairment of assets
Less Accumulated depreciation
Cost or revalued amount
As at 1 January 2012
Land
47,089,347
-
(7,635,478)
54,724,825
47,089,347
(2,736,241)
-
-
-
-
-
-
-
49,825,588
49,825,588
-
(4,899,237)
54,724,825
Building
15 Property, plant and equipment (net) (Cont’d)
11,982,058
-
(20,836,430)
32,818,488
11,982,058
(3,368,315)
-
-
27,581
(32,710)
-
-
657,643
14,697,859
14,697,859
-
(17,495,696)
32,193,555
Building
for lease
improvements
79,298,828
-
(85,082,570)
164,381,398
79,298,828
(20,068,764)
826,050
(952,064)
2,086,658
(2,243,820)
39,363
15,003,723
31,983,057
52,624,625
52,624,625
-
(67,926,514)
120,551,139
Furniture
and fixtures
and office
equipment
8,480,434
-
(31,889,954)
40,370,388
8,480,434
(2,670,227)
355,765
(368,028)
1,215,323
(1,215,400)
17,738
5,592,584
5,552,679
5,552,679
-
(30,790,815)
36,343,494
Computer
equipment
Consolidated (Baht)
4
-
(1,957,589)
1,957,593
4
-
-
-
-
-
-
-
-
4
4
-
(1,957,589)
1,957,593
Vehicles
55,484,519
-
-
55,484,519
55,484,519
-
-
-
-
-
-
(15,021,461)
65,315,445
5,190,535
5,190,535
-
-
5,190,535
Construction
in progress
296,472,818
(500,000)
(148,436,389)
445,409,207
296,472,818
(29,461,507)
1,181,815
(1,320,092)
3,329,562
(3,491,930)
39,363
104,858,519
221,337,088
221,337,088
(500,000)
(123,486,259)
345,323,347
Total
157
158
TV Direct Public Company Limited
-
Transfers in (out)
Transfers from inventories
Reclassification (Note 16)
Disposal - cost
4,437,849
-
(2,093,381)
97,934,776
-
(11,726,312)
109,661,088
97,934,776
(4,090,834)
54,936,263
47,089,347
Building
38,404,819
-
(26,557,839)
64,962,658
38,404,819
(5,721,409)
31,921,480
222,690
11,982,058
Building
for lease
improvements
88,471,159
(108,883,228)
197,354,387
88,471,159
(26,478,417)
1,076,166
(1,159,287)
1,601,593
(1,605,900)
690,206
14,003,123
21,044,847
79,298,828
Furniture
and fixtures
and office
equipment
15,377,839
(36,629,943)
52,007,782
15,377,839
(4,739,989)
9,782,400
1,854,994
8,480,434
Computer
equipment
Consolidated (Baht)
4
-
4
4
(1,957,589)
1,957,593
Vehicles
8,932,189
8,932,189
8,932,189
(821,100)
(113,703,266)
1,658,344
66,313,692
55,484,519
Construction
in progress
533,607,693
345,259,401
(42,089,662)
1,076,166
(1,159,287)
1,601,593
(1,605,900)
(821,100)
690,206
1,658,344
89,436,223
296,472,818
Total
As at 31 December 2013, the gross carrying amount of fully depreciated plant and equipment that are still in used as included in the consolidated and
company financial statements were Baht 97,482,043 and Baht 97,347,876 (2012 : Baht 80,102,319 and Baht 80,102,319), respectively.
345,259,401
(500,000)
(187,848,292)
As at 31 December 2013 and 2012, land and building for lease are being used as collaterals of borrowings of the Company (Note 21 and 22).
91,700,766
(500,000)
Allowance for impairment of assets
Net book value
-
6,531,230
4,437,849
91,700,766
92,200,766
(1,059,013)
-
-
-
-
-
-
3,060,000
-
-
2,436,862
Land
for lease
improvements
-
-
-
Accumulated depreciation
Less
Cost or revalued amount
As at 31 December 2013
Closing net book value
Depreciation charge (Note 33)
- accumulated depreciation
Write-off - cost
-
-
Interest expense capitalised
- accumulated depreciation
-
91,700,766
Additions
Opening net book value
For the year ended 31 December
2013
Land
15 Property, plant and equipment (net) (Cont’d)
159
16 Intangible assets (net)
Computer software
Consolidated
Company
Baht
Baht
As at 31 December 2011
Cost
29,880,948
29,508,009
Less Accumulated amortisation
(10,258,957)
(10,171,976)
Net book amount 19,621,991
19,336,033
For the year ended 31 December 2012
Opening net book amount 19,621,991
19,336,033
Additions
9,548,251
9,423,290
Write-offs
(2,540,000)
(2,540,000)
Amortisation charge (Note 33)
(5,806,942)
(5,724,824)
Closing net book value
20,823,300 20,494,499
As at 31 December 2012
Cost
Less Accumulated amortisation Net book amount
36,889,199
(16,065,899)
For the year ended 31 December 2013
Opening net book amount Additions
Reclassification (Note 15) Adjustment
Amortisation charge (Note 33)
Closing net book value
As at 31 December 2013
Cost
Less Accumulated amortisation Net book amount
36,391,299
(15,896,800)
20,823,300 20,494,499
20,823,300 20,494,499
20,025,037
821,100
(216,000)
(7,353,154)
19,946,111
821,100
(216,000)
(7,247,435)
34,100,283
33,798,275
57,519,336
(23,419,053)
56,942,510
(23,144,235)
34,100,283 33,798,275
17 Leasehold right (net)
Consolidated/Company
2013
2012
Baht
Baht
Leasehold right
2,600,000
2,600,000
Less Accumulated amortisation
(2,471,781)
(1,951,781)
128,219
648,219
18 Deferred income tax (net)
Deferred income taxes as at 31 December 2013 and 2012 comprise the following:
ConsolidatedCompany
Restated Restated
2013
2012
2013
2012
Baht
Baht
Baht
Baht
Deferred income tax assets:
Deferred income tax asset to be recovered within 12 months
1,800,234
1,861,891
Deferred income tax asset to be recovered
after more than 12 months 14,314,303
11,995,710
16,114,537
13,857,601
Deferred income tax liabilities:
Deferred income tax liabilities to be settled within 12 months
(960,907)
(655,023)
Deferred income tax liabilities to be settled
after more than 12 months (8,752,349) (9,733,420)
(9,713,256)
(10,388,443)
Deferred income tax assets (net)
6,401,281
3,469,158
1,800,234
1,861,891
14,245,780
11,796,718
16,046,014
13,658,609
(960,907)
(655,023)
(8,725,379)
(9,722,037)
(9,686,286)
(10,377,060)
6,359,728
3,281,549
The movement of deferred income taxes for the year ended 31 December 2013 and 2012 comprises the
following:
ConsolidatedCompany
Restated Restated
2013
2012
2013
2012
Baht
Baht
Baht
Baht
Opening balance
3,469,158
Increase/(decrease) to the statement of comprehensive income
3,123,022
Increase/(decrease) to the shareholders’ equity
(190,899)
Closing balance
6,401,281 160
TV Direct Public Company Limited
4,331,527
3,281,549
4,075,560
(850,533)
(11,836)
3,253,491
(175,312)
(793,558)
(453)
3,469,158 6,359,728 3,281,549
161
18 Deferred income tax (net) (Cont’d)
The movement of deferred income taxes for the year ended 31 December 2013 and 2012 comprises the
following: (Cont’d)
Consolidated
(Credits)
debits to the
(Credits)
statement of debits to the
1 January comprehensive shareholders’ 31 December
2013
income
equity
2012
Baht
Baht
Baht
Baht
Deferred income tax assets:
Allowance for doubtful accounts
5,308,104
Allowance for obsolete and slow-moving inventories
2,172,491
Allowance for inventories cost in excess of net realisable value
16,605
Allowance for impairment of assets
100,000
Different amortisation charge between tax and accounting for intangible assets amortisation
1,434,735
Liability under finance lease agreements
2,840,981
Provision for goods returned
203,139
Employee benefit obligations
1,781,546
13,857,601
Deferred income tax liabilities:
Surplus from land revaluation
(6,329,098)
Gain on measurement available-for-sale investments
(11,836)
Assets under finance lease agreements
(4,047,509)
(10,388,443)
3,469,158
2,052,687
(531,653) 106,661
-
7,360,791
1,640,838
- 123,266
100,000
549,908
(993,558)
(31,356) 1,104,247
- 1,984,643
- 1,847,423
- 171,783
- 2,885,793
2,256,936
- 16,114,537
-
-
(6,329,098)
866,086
(190,899) (202,735)
- (3,181,423)
866,086
(190,899) (9,713,256)
3,123,022
(190,899)
6,401,281
18 Deferred income tax (net) (Cont’d)
The movement of deferred income taxes for the year ended 31 December 2013 and 2012 comprises the
following: (Cont’d)
Consolidated
(Credits)
debits to the
(Credits)
statement of debits to the
1 January comprehensive shareholders’ 31 December
2013
income
equity
2013
Baht
Baht
Baht
Baht
Deferred income tax assets:
Allowance for doubtful accounts
5,922,175
Allowance for obsolete and slow-moving inventories
3,021,798
Allowance for inventories cost in excess of net realisable value
39,721
Allowance for impairment of assets 100,000
Different amortisation charge between tax and accounting for intangible assets amortisation
1,006,698
Liability under finance lease agreements 804,377
Provision for goods returned
Employee benefit obligations
906,138
11,800,907
Deferred income tax liabilities:
Surplus from land revaluation
(6,329,098)
Gain on measurement available-for-sale investments
Assets under finance lease agreements
(1,140,282)
(7,469,380)
4,331,527
162
TV Direct Public Company Limited
(614,071)
(849,307)
(23,116)
-
428,037
2,036,604
203,139
875,408
2,056,694
(2,907,227)
(2,907,227)
(850,533)
-
5,308,104
2,172,491
-
16,605
100,000
-
1,434,735
2,840,981
203,139
1,781,546
- 13,857,601
- (6,329,098)
(11,836) (11,836)
- (4,047,509)
(11,836) (10,388,443)
(11,836)
3,469,158
163
18 Deferred income tax (net) (Cont’d)
The movement of deferred income taxes for the year ended 31 December 2013 and 2012 comprises the
following: (Cont’d)
Company
(Credits)
debits to the
(Credits)
statement of debits to the
1 January comprehensive shareholders’ 31 December
2013
income
equity
2013
Baht
Baht
Baht
Baht
Deferred income tax assets:
Allowance for doubtful accounts
5,308,104
2,052,687
- 7,360,791
Allowance for obsolete and slow-moving inventories
1,973,499
(401,184)
1,572,315
Allowance for inventories cost in excess of net realisable value
16,605
106,661
123,266
Allowance for impairment of assets 100,000
100,000
Different amortisation charge between tax and accounting for intangible assets amortisation
1,434,735
549,908
1,984,643
Liability under finance lease agreements 2,840,981
(993,558)
1,847,423
Provision for goods returned
203,139
(31,356)
171,783
Employee benefit obligations
1,781,546
1,104,247
2,885,793
13,658,609
2,387,405
- 16,046,014
Deferred income tax liabilities:
Surplus from land revaluation
(6,329,098)
- (6,329,098)
Gain on measurement available-for-sale investments
(453)
-
Assets under finance lease agreements
(4,047,509)
866,086
(10,377,060)
866,086
3,281,549
3,253,491
(175,312)
-
(175,765)
(3,181,423)
(175,312) (9,686,286)
(175,312)
6,359,728
18 Deferred income tax (net) (Cont’d)
The movement of deferred income taxes for the year ended 31 December 2013 and 2012 comprises the
following: (Cont’d)
Company
(Credits)
debits to the
(Credits)
statement of debits to the
1 January comprehensive shareholders’ 31 December
2013
income
equity
2013
Baht
Baht
Baht
Baht
Deferred income tax assets:
Allowance for doubtful accounts
5,666,208
(358,104)
5,308,104
Allowance for obsolete and slow-moving inventories
-
1,973,499
Allowance for inventories cost in excess of net realisable value
39,721
(23,116)
-
16,605
Allowance for impairment of assets 3,021,798
(1,048,299)
100,000
-
-
100,000
Different amortisation charge between tax and accounting for intangible assets amortisation
1,006,698
428,037
-
1,434,735
Liability under finance lease agreements
-
2,840,981
203,139
-
203,139
Employee benefit obligations
906,138
875,408
11,544,940 2,113,669
-
1,781,546
-
13,658,609
804,377 2,036,604
Provision for goods returned
-
Deferred income tax liabilities:
Surplus from land revaluation
(6,329,098)
Gain on measurement available-for-sale investments
Assets under finance lease agreements
(1,140,282)
(2,907,227)
(7,469,380)
(2,907,227)
4,075,560
(793,558)
- (6,329,098)
(453)
(453)
- (4,047,509)
(453) (10,377,060)
(453)
3,281,549
19 Other non-current assets (net)
Consolidated
2013
2012
Baht
Baht
Company
2013
2012
Baht
Baht
Rental guarantees
23,095,193
22,024,443
22,964,693 21,839,369
Other guarantees
7,469,095
7,400,056
7,469,095 7,400,056
Refundable deposit
382,825
573,397 Prepaid satellite rental (net)
3,242,775 Others
2,026,673 1,320,368
2,026,673 1,320,368
32,973,786
34,561,039
32,460,461 30,559,793
164
TV Direct Public Company Limited
165
20 Trade and other accounts payable
Consolidated
Company
2013
2012
2013
2012
Baht
Baht
Baht
Baht
Trade accounts payable
- other companies
179,211,706
189,715,211 172,496,247 189,452,691
- related parties (Note 37 c))
2,855,514
Other accounts payable - other companies
39,978,453
39,891,669
38,755,626 38,874,427
Accrued expenses - Accrued bonus 6,600,000
13,200,000
6,600,000 13,200,000
- Dividend payable (Note 27)
206,023
63,227
206,023
63,227
- Accrued warehouse management &
distribution expenses 5,890,384
5,464,344 5,446,303 5,464,344
- Accrued service expenses 3,468,848
2,579,021 1,380,468
625,363
- Accrued commission 5,139,242
3,859,572 5,103,528 3,799,189
- Accrued consulting expenses
4,560,000
4,560,000
- Accrued mail expenses
2,509,302
2,642,434
2,509,302 2,642,434
- Accrued telephone expenses 2,896,402
3,566,271
2,846,163 3,524,209
- Accrued interest expense
581,065
893,142
581,065
893,142
- Other accrued expenses 13,678,958 12,649,665 11,105,799 8,794,783
Advances received from customers 8,955,253 20,355,603
8,930,434 20,348,824
Cash waiting for return to customer 990,156 218,771 987,992 218,771
Revenue received in advance 148,875
766,273 148,879
766,273
Post dated cheque paid 116,997
23,909
274,931,664 295,889,112 264,513,339 288,667,677
21 Short-term borrowings from financial institutions
2013
Type of short-term borrowings
Baht
Bank overdrafts
Promissory notes Trust receipts 3,887,177
123,168,790
127,055,967
Consolidated/Company
2012
Baht
1,664,361
87,222,851
167,085,467
255,972,679
As at 31 December 2013 and 2012, short-term borrowings from financial institutions were as follows:
-
As at 31 December 2012, bank overdraft bears interest rates of 7.40% - 7.48% per annum.
-
As at 31 December 2013, rollable-over promissory notes denominated in Thai Baht bear interest rates
of 5.70% per annum (2012 : 6.00% per annum). The outstanding principal and interest are due for repayments
during February to March 2013 (2012 : during January to March 2013).
-
As at 31 December 2013, rollable-over trust receipts denominated in Thai Baht bear interest rates of 3.500%6.500% per annum (2012 : 5.375% - 6.000%per annum). The outstanding principal and interest rate are due for
repayments during February to May 2013 (2012 : during January to May 2013).
21 Short-term borrowings from financial institutions (Cont’d)
-
As at 31 December 2013 and 2012, the Company uses its land & building (Note 15) and fixed deposit (Note
14) entitled to TV Direct Public Company Limited as a collateral against these borrowings.
The movement of short-term borrowings from financial institutions for the year ended 31 December 2013 and
2012 is as follows:
Consolidated
Bank Promissory
overdraf
notes Trust receipts
Total Baht
Baht
Baht
Baht
Opening net book value as at 1 January 2012
30,615,801
62,841,594 111,833,769 205,291,164
Additions
511,663,552 478,562,936347,827,8191,338,054,307
Repayments (540,614,992) (454,181,679) (292,576,121) (1,287,372,792)
Ending net book value as at 31 December 2012
1,664,361
87,222,851 167,085,467 255,972,679
Additions
249,884,488 107,950,082361,663,379 719,497,949
Repayments (251,548,849) (191,285,756) (405,580,056) (848,414,661)
Ending net book value as at 31 December 2013
3,887,177 123,168,790 127,055,967
Company
Bank Promissory
overdraf
notes Trust receipts
Total Baht
Baht
Baht
Baht
Opening net book value as at 1 January 2012
30,615,801
62,841,594 111,833,769 205,291,164
Additions
511,663,552 478,562,936347,827,8191,338,054,307
Repayments (540,614,992) (454,181,679) (292,576,121) (1,287,372,792)
Ending net book value as at 31 December 2012
1,664,361
87,222,851 167,085,467 255,972,679
Additions
249,884,488 107,950,082361,663,379 719,497,949
Repayments (251,548,849) (191,285,756) (405,580,056) (848,414,661)
Ending net book value as at 31 December 2013
3,887,177 123,168,790 127,055,967
Short-term credit facilities from four financial institutions consists of:
Type
166
2013
Million
Baht
2012
Million
Baht
2013
Interest rate
2012
Interest rate
Bank overdrafts
50
50
MOR - 0.375%
to MOR
per annum
MOR - 0.375%
to MOR
per annum
Bank overdrafts by buyer
20
30
MOR - 1.0%
per annum
MOR - 1.0%
per annum
Short-term borrowings
- promissory notes
110
90
MLR - 1.5% to
MLR - 1.0%
per annum
MLR - 1.0%
per annum
Letter of credit/trust
receipts
370
300
MLR - 2.0%
to MLR - 1.0%
per annum
MLR - 2.0%
to MLR - 1.0%
per annum
Letter of bank guarantees
60
40
Bank charge
1.5% - 2.0%
per annum
Bank charge
1.75%
per annum
Foreign currencies
forward contracts
390
310
-
-
TV Direct Public Company Limited
2013
Collateral
2012
Collateral
-Fixed deposits
(Note 14)
-Land including
construction
(Note 15)
-Fixed deposits
(Note 14)
-Land including
construction
(Note 15)
167
21 Short-term borrowings from financial institutions (Cont’d)
Consolidated
Company
2013
2012
2013
2012
Baht
Baht
Baht
Baht
Unused credit lines
Floating interest rate
344,294,639 260,941,172 344,294,639260,941,172
22 Long-term borrowing from financial institution
The movement of long-term borrowing from financial institutions for the years ended 31 December 2013 and 2012
comprises:
Consolidated/Company
2013
2012
Baht
Baht
Opening net book value 72,385,010
47,928,010
Additions borrowings
68,070,000
31,930,000
Repayment borrowings
(24,093,885)
(7,473,000)
Ending net book value 116,361,125
72,385,010
Less Current portion
(31,460,151)
(14,616,433)
84,900,974
57,768,577
The Company has long-term borrowing from 3 financial institutions in Thai Baht as follows:
-The Company entered into long-term loan facilities agreement with a commercial bank denominated in
Thai Baht in the amount of Baht 15 million for new studio construction and purchasing equipment. This borrowing
bears interest at the rate of MLR - 1.5% and interest is payable on a monthly basis. The principal is repayable in 60
equal - monthly installment of Baht 166,300 each, commencing March 2012. The Company has mortgaged
its land including construction (Note15). In addition, the Company must maintain Debt Service Coverage
Ratio (DSCR) at least 2.0 :1 and Debt to Equity ratio not over 2.0 :1 for 2012 onwards. As at 31 December 2013,
the Company already paid for all of the borrowing (2012 : the total outstanding borrowing amount is Baht 6,315,010).
-The Company entered into long-term loan facilities agreement with a commercial bank denominated in
Thai Baht in the amount of Baht 40 million for purchasing land and buildings for new office. This borrowing bears
interest at the rate of MLR - 1.25% and interest is payable on a monthly basis. The principal is repayable in 54
equal - monthly installment of Baht 830,000 each, commencing June 2012. The Company has mortgaged its lands
(Note 15). The Company must maintain Debt Service Coverage Ratio (DSCR) at least 1.5 : 1 and Debt to Equity ratio
not over 2.0 : 1. As at 31 December 2013, the total outstanding borrowing amount is Baht 24,180,000 (2012 : Baht
34,140,000).
-The Company entered into long-term loan facilities agreement with a commercial bank denominated
in Thai Baht in the amount of Baht 100 million for purchasing land and buildings for new office. This borrowing
bears interest at the rate of MLR - 1.25% and interest is payable on a monthly basis. The principal is repayable
in 60 equal - monthly installment of Baht 2,030,000 each, commencing August 2013. The Company has
mortgaged its lands (Note 15) as at 31 December 2013, the total outstanding borrowing amount is Baht 92,181,125
(2012 : Baht 31,930,000).
23 Liability under finance lease agreements (net)
Consolidated/Company
2013
2012
Baht
Baht
Liability under finance lease agreements
9,908,742
15,893,147
Less Future finance charges on finance lease (671,628)
(1,688,240)
9,237,114
14,204,907
Less Current portion (6,988,573)
(6,400,059)
2,248,541
7,804,848
Payment to be made in subsequent years are as follows:
Within 1 year 7,597,651
More than 1 year but no longer than 3 years
2,311,091
9,908,742
7,587,789
8,305,358
15,893,147
24 Other current liabilities
Consolidated
Company
2013
2012
2013
2012
Baht
Baht
Baht
Baht
Withholding tax payable 3,275,936
2,989,286
2,764,923 2,631,580
Provision for goods returned 858,913
1,015,694
858,913 1,015,694
Retention payable 231,115
1,400,909
231,115 1,400,909
Others
538,303 364,855 342,360261,698
4,904,267 5,770,744 4,197,3115,309,881
168
TV Direct Public Company Limited
169
25 Employee benefit obligations
As disclosed in accounting policy in Notes 2.15, the employee benefit obligations of Baht 8,896,666 as at 31
December 2010, is recognised on a straight-line basis over five years at approximately Baht 1,779,333 per year.
For employee benefit obligations of subsidiaries, the management assessed that the obligations are not significant.
The movement of employee benefits obligation for the year ended 31 December 2013 and 2012 is set out below:
For the year ended 31 December
Consolidated
Company
2013
2012
2013
2012
Baht
Baht
Baht
Baht
Initial employee benefit obligations which
have not been recognised
Opening balance of initial provision for employee
benefits which have not been recognised
5,338,000
7,117,333
5,338,000 7,117,333
Recognised as liability during the year
(1,779,333)
(1,779,333)
(1,779,333) (1,779,333)
Closing balance of initial provision for employee
benefits which have not been recognised
3,558,667
5,338,000
3,558,667 5,338,000
Employee benefit obligations which are recognised
Opening balance of the recognised provision for employee benefits
8,907,732
4,346,103
8,907,732 4,346,103
Initial provision for employee benefits
recognised during the year 1,779,333
1,779,333
1,779,333 1,779,333
Increase during the year 4,651,835
4,012,863
4,651,835 4,012,863
Payment during the year
(909,936)
(1,230,567)
(909,936) (1,230,567)
Closing balance of the recognised provision for
employee benefits
14,428,964
8,907,732
14,428,964 8,907,732
Total recognised and non-recognised obligation for employee benefits as at 31 December 2013
17,987,631
14,245,732
17,987,631 14,245,732
The principal actuarial assumptions used were as follows:
For the year ended
31 December
Consolidated
Company
Discount rate
Future salary increases
Death rate
Disability rate
Turnover rate
For the year ended
31 December Consolidated
Company
4.32%
4.32%
4.32%
4.32%
0.00% - 5.00%
0.00% - 5.00% 0.00% - 5.00% 0.00% - 5.00%
60% of TMO 2540 60% of TMO 254060% of TMO 2540 60% of TMO 2540
5% of death rate 5% of death rate 5% of death rate 5% of death rate
0.00% - 50.00% 0.00% - 50.00% 0.00% - 50.00% 0.00% - 50.00%
26 Share capital
26.1 Change of par value
At the Extraordinary Shareholders’ Meeting No. 1/2012 held on 24 May 2012, the shareholders anonymously
approved the change of par value from Baht 1.00 each to Baht 0.50 each by spliting the existing 188,000,000
ordinary shares into 376,000,000 ordinary shares. The Company registered the change of par value with the Ministry
of Commerce on 28 May 2012. In addition, the shareholders anonymously approved to offer issued 52,000,000
shares to public and 5,920,000 shares to directors and employees of the Company and its subsidiaries at the
same offering period, at the offered price of not less than 0.50 Baht per share. The Board of Directors was
authorised to execute the aforementioned execution.
At the Board of Directors’ Meeting 7/2555 held on 23 July 2012, the Board of Directors anonymously
approved conditions for new ordinary shares allocation for selling to directors, management and employees
of the Company and its subsidiaries. The defined conditions were that the eligible persons had served the
Group for at least 2 years, and they can buy the shares at 20% discount to the IPO price. Also, the shares must
be in a one-year silent period.
According to letter from the Stock Exchange of Thailand (SET) at Bor.Jor. 469/2555 dated 21 August 2012,
the SET’s Board of Governors approved the Company for first trading of 376,000,000 ordinary shares at par value
of Baht 0.50 per share in the Market Alternative Investment (MAI) from 23 August 2012 onwards. The 376,000,000
ordinary shares comprises:
-
Original 318,080,000 ordinary shares prior to IPO, at par value of Baht 0.50 per share.
-
Additional 57,920,000 ordinary shares increase for IPO, at par value of Baht 0.50 per share. These
shares include:
(1) selling to the public for 54,620,000 shares at Baht 2.10 per share.
(2) selling to directors and employees of the Company and its subsidiaries for 3,300,000 shares at Baht 1.68
per share with a one-year silent period since first trading.
The variance between selling price to directors and employees of the Company and its subsidiaries and selling
price to the public of Baht 1,386,000 is immediately recognised in the statement of comprehensive income (Note 38).
In addition, expenses incurred from IPO of Baht 3,607,380 is recognised and presented net from share
premium.
26.2 Increase share capital
At the Extraordinary Shareholders’ Meeting No. 1/2013 held on 25 May 2013 the Board passed a
resolution approving the increasing registered share capital and warrants for such new ordinary shares by
increasing of the Company’s registered capital from 376,000,000 shares with a par value of Baht 0.50 per share,
totalling Baht 188,000,000 to new registered capital of 493,500,000 ordinary shares with a par value of Baht
0.50 per share totalling Baht 246,750,000, by issuing new 117,500,000 ordinary shares at par value of Baht 0.50
per share, totalling Baht 58,750,000. The details of which are as follows:
170
TV Direct Public Company Limited
171
Allotted to
Number (shares)
Ratio
(old : new)
Sale price
per share (Baht)
Subscription
and payment
period
Existing
Shareholders
94,000,000
4 existing shares
: 1 new ordinary share
Baht 4.50
June 28 and
July 2-5, 2013
Reserve for exercising
the right of the Company’s
warrants allotted to the existing
shareholders who have
subscribed for the rights
offering and are allotted the
right offering shares (TVD-W1)
23,500,000
4 new ordinary share
: 1 unit of warrant
(1 unit of warrant
represent the right
to purchase 1 unit of the
Company
ordinary share)
Baht 3.50
(Exercise Price)
-
The Company registered an increasing in registered share capital with Department of Business Development
on 11 June 2013.
On 9 July 2013, the Company received such increasing share capital for 93,999,992 shares at Baht 4.50
totalling Baht 422,999,964. The Company registered the increasing of issued and fully paid-up ordinary share capital
with Development of Business Development on 10 July 2013.
26.3 Warrants
Warrants to purchase ordinary shares No.1 (TVD-W1)
On 15 July 2013, the Company issued warrants to purchase the Company’s ordinary shares offering to the
existing shareholders. The details are as follows:
Type of warrants
: Issued in the names of respective holder and negotiable
Term of warrants
: 3 years from the issuing date
Number of warrants offered : 23,500,000 units
Number of warrants issued
: 23,499,780 units
Offering price
: Baht 0 per unit
Exercise ratio
: 1 warrant per 1 ordinary shares (which will be changeable)
Exercise price
: Baht 3.50 per share (which will be changeable)
Exercise date
: On the last business day of June and December of each year, throughout
the term of the warrants and the first exercise date is the last business
day of December 2013.
The last exercise date
: 14 July 2016
During the year, no holders exercised their rights under the warrants to purchase ordinary shares No. 1
(TVD-W1).
As at 31 December 2013 the outstanding balance of unexercised warrants to purchase ordinary shares No. 1
(TVD-W1) is 23,499,780 units.
27 Dividend payment and legal reserve
At the Board of Directors’ meeting 9/2013 held on 25 September 2013, the shareholders approved the
interim dividend for the result of operations from 1 January 2013 to 30 June 2013 at Baht 0.07 per share,
totalling Baht 32,899,649 and approved an appropriation for legal reserve amounting to Baht 2,698,501. There was
outstanding dividend payable as at 31 December 2013 amounting to Baht 71,163 (Note 20).
At the annual general shareholders’ meeting on 29 March 2013, the shareholders approved the dividend
payment for the year 2012 at Baht 0.10 per share, totalling Baht 37,600,000 and approved an appropriation
of legal reserve amounting to Baht 1,741,084. The Company already paid dividend amounting to Baht 37,489,423
to shareholders on 11 April 2013 and there was outstanding dividend payable as at 31 December 2013 amounting
to Baht 99,150 (Note 20).
At the Board of Directors’ meeting 9/2012 held on 24 September 2012, the shareholders approved the
interim dividend for the result of operations from 1 January 2012 to 30 June 2012 at Baht 0.05 per share, totalling
Baht 18,800,000 and approved an appropriation for legal reserve amounting to Baht 2,536,160. The Company
already paid dividend amounting to Baht 18,726,273 to shareholders on 22 October 2012 and there was
outstanding dividend payable as at 31 December 2013 amounting to Baht 35,710 (Note 20).
At the annual general shareholders’ meeting on 5 April 2012, the shareholders approved the dividend
payment for the year 2011 at Baht 0.20 per share, totalling Baht 31,808,000 and approved an appropriation
for legal reserve amounting to Baht 2,164,752. The Company already paid dividend amounting to Baht 31,808,000
to shareholders during in April and May 2012.
28 Legal reserve
2013
Baht
Opening balance
12,069,134
Appropriation during the year
4,439,585
Ending balance
16,508,719
Consolidated/Company
2012
Baht
7,368,222
4,700,912
12,069,134
Under the Public Companies Act, the Company is required to set aside as a statutory reserve at least
5 percent of its net profit after accumulated deficit brought forward (if any) until the reserve is not less than 10 percent
of the registered capital. The legal reserve is not distributable as a dividend.
29 Non-controlling interest
2013
Baht
Opening balance
(4,123,044)
Share of net profit (loss) of subsidiary (3,380,578)
(Increase) decrease in non-controlling interest during the year 14,700,205
Ending balance
7,196,583
172
TV Direct Public Company Limited
Consolidated
2012
Baht
(245,379)
(1,832,909)
(2,044,756)
(4,123,044)
173
30 Net compensation income from fire incident at a warehouse
Net compensation income from fire incident at a warehouse for the years ended 31 December 2013 and 2012
are as follows:
Consolidated/Company
For the years ended 31 December
2013
2012
Baht
Baht
Compensation income from business interruption
Compensation income from fire incident at a warehouse
Loss from write-off inventory from fire incident (Note 10)
Loss from write-off tooling from fire incident
Loss from write-off supplies from fire incident (Note 10)
Net compensation income from fire incident at a warehouse
6,976,246
1,061,106
8,037,352
82,000,434
(81,793,263)
(109,410)
(53,243)
44,518
On 17 October 2012, there was a fire in the Company’s rented warehouse, which is operated by JWD
InfoLogistics Co., Ltd. located at 222 Moo 17 Samwa Road, Minburi, Bangkok. The fire caused the damage
to inventory, tooling and warehouse supplies of Baht 81,793,263, Baht 109,410 and Baht 53,243, respectively.
However, the Company carries insurance policy with Dhipaya Insurance Plc. for all-risk insurance and
business interruption insurance. The insurance covers inventory damage of Baht 115 million, assets insurance
of Baht 1 million and business interruption of Baht 20 million.
On 28 December 2012, Dhipaya Insurance Plc. has confirmed the amount of compensation for inventory and
assets have to pay to the Company totalling Baht 82,000,434 (Note 9). The Company received compensation on
12 April 2013.
During the year 2013, the Company received addition compensation income for inventory damaged from fire
incident in late 2012 from Dhipaya Insurance Plc. totalling Baht 1,061,106.
During the year 2013, JWD InfoLogistics Co., Ltd. and Dhipaya Insurance Plc. have confirmed the amount
of compensation for business interruption from fire incident in late 2012 totalling Baht 5,300,000 and Baht 1,676,246,
respectively.
31 Other income
For the year ended 31 December
Consolidated
Company
2013
2012
2013
2012
Baht
Baht
Baht
Baht
Net gain from exchange rate 3,110,152
3,869,336
2,066,299 4,730,757
Revenue from insurance compensation
of flood incident
3,530,641
- 3,530,641
Interest income
1,355,182
1,502,467
1,278,879 1,065,659
Compensation income from
building construction delay 1,103,915
1,103,915
Compensation income from theft of equipment
23,904
23,904
Loss from write-off equipment from theft
(23,904)
(23,904)
Income from sale of the Company’s customer database
10,000,000
10,000,000
Gain from disposal of available-for-sale investments
628,223
356,173
Other income
3,781,313
3,292,850
3,713,702 2,346,391
19,978,785 12,195,294 18,518,96811,673,448
As at 28 December 2012, Insurance company has paid the compensation for the disaster of floods in 2011
to the Company in the amount totalling Baht 3,530,641.
32 Other expenses
For the year ended 31 December
Consolidated
Company
2013
2012
2013
2012
Baht
Baht
Baht
Baht
Loss from investment in the subsidiaries
- TV Direct (Malaysia) Sdn. Bhd. (Note 12)
(6,261,688)
Loss from write-off property, plant and equipment
and intangible assets
(326,678)
(2,700,527)
(73,410) (2,576,537)
(326,678) (8,962,215)
(73,410)(2,576,537)
174
TV Direct Public Company Limited
175
33 Expenses by nature
The following expenditure items for the years ended 31 December 2013 and 2012, classified by nature, have
been charged in profit before finance costs and income tax:
For the year ended 31 December
Consolidated
Company
2013
2012
2013
2012
Baht
Baht
Baht
Baht
Changes in finished goods and supplies (62,865,119) (13,328,086) (59,991,501) (7,185,276)
Purchases of finished goods (837,571,207) (775,541,143) (830,685,143) (775,336,336)
Advertising airtime media rental expense
(397,665,215) (373,421,355) (390,448,711)(370,064,755)
Advertising and printing media
production expense
(98,604,572) (103,213,228) (98,328,558)(101,593,725)
Staff cost expense
(383,824,934) (359,308,968) (367,810,874)(347,887,091)
Distribution expense (89,298,546) (89,185,186) (87,566,445) (88,376,100)
Space and warehouse rental expense (50,462,149) (38,626,240) (44,585,519) (38,451,737)
Public utility expense
(42,800,691) (38,080,106) (41,188,839) (36,795,721)
Depreciation and amortisation (Note 15, 16 and 17)
(51,390,836) (36,582,268) (49,857,097) (35,706,331)
Organizing fee expense (8,971,549) (86,866,313)
(8,258,306) (86,738,489)
34 Finance costs
For the year ended 31 December
Consolidated
Company
2013
2012
2013
2012
Baht
Baht
Baht
Baht
Interest from borrowings from financial institutions
(14,489,126) (15,974,029) (14,489,126) (15,930,165)
Interest expense from liability under financial lease agreements
(1,104,785)
(943,830) (1,104,785)
(943,830)
Interest expense from borrowings from others and related parties
(31,087)
(15,593,911)(16,948,946)(15,593,911)(16,873,995)
35 Income tax
Reconciliation of income tax expenses for the years ended 31 December 2013 and 2012 comprises:
Consolidated
Company
Restated
Restated
2013
2012
2013
2012
Baht
Baht
Baht
Baht
Current income tax on taxable profit for the year
19,326,174 26,914,238 19,326,174 26,914,238
Origination of temporary differences
(3,123,022)
850,533 (3,253,491)
793,558
Total income tax 16,203,152 27,764,771 16,072,683 27,707,796
Consolidated
Company
Restated
Restated
2013
2012 2013
2012
Baht
Baht
Baht
Baht
Profit before tax accounting base
54,118,753 74,837,773 81,546,679 112,459,113
Tax calculated at a tax rate of 20%, 24% and 25%
(2012 : 23%, 25% and 28%)
16,309,336 25,865,596 16,309,336 25,865,596
Tax effect of:
Expenses not deductible for tax purpose
(additional tax deductible expenses)
(236,653)
1,842,200
(236,653)
1,842,200
Tax losses for which no deferred income tax asset was recognised
130,469
56,975
Income tax
16,203,152 27,764,771 16,072,683 27,707,796
The result of the change in corporation tax rate in Thailand from 30% to 23% for the year beginning on
or after 1 January 2012 and 20% for the 2 years beginning on or after 1 January 2013, the relevant deferred tax
balances have been re-measured. Deferred tax reverse in the period of 1 January 2013 to 31 December 2013 has been
measured using the effective rate that will apply for the period of 20% (1 January 2012 to 31 December 2012 : 23%).
36 Earnings per share
36.1 Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to shareholders by the weighted
average number of ordinary shares in issue during the period.
Consolidated
Company
Restated
Restated
2013
2012 2013
2012
Profit attributable to shareholders of the parent (Baht)
41,207,914 48,967,736 65,473,996 84,751,317
Weighted average number of ordinary shares (Shares)
420,810,955 337,544,918 420,810,955 337,544,918
Basic earnings per share (Baht)
0.0979
0.1451
0.1556
0.2511
176
TV Direct Public Company Limited
177
36 Earnings per share (Cont’d)
36.2 Diluted earnings per share
The diluted earnings per share is calculated adjusting the weighted average number of ordinary shares
outstanding to assume conversion of all dilutive potential ordinary shares. The Group has dilutive potential ordinary
shares that are warrants (Note 26.3). The number of shares calculated as above is compared with the number
of shares that would have been issued assuming the exercise of the warrant. The difference is added to the
denominator as an issue of ordinary shares for no consideration. No adjustment is made to earnings.
Due to diluted earnings per share of the Company is affected by warrants issuance in 2013, as a result, there
was no diluted earnings per share in 2012.
Consolidated
Company
20132012
Profit attributable to shareholders of the parent (Baht)
41,207,914
Weighted average number of ordinary shares outstanding (Shares) 420,810,955
Assumed shares issued from exercising warrants (Shares)
7,030,305
Weighted average number of ordinary shares for diluted
earnings per share (Shares)
427,841,260
Diluted earnings per share (Baht)
0.0963
65,473,996
420,810,955
7,030,305
427,841,260
0.1530
37 Related party transactions
Enterprises and individuals that directly, or indirectly through one or more intermediaries, control, or are
controlled by, or are under common control with, the Company, including holding companies, subsidiaries and
fellow subsidiaries are related parties of the Company. Associates and individuals owning, directly or indirectly,
an interest in the voting power of the Company that gives them significant influence over the enterprise, key
management personnel, including directors and officers of the Company and close members of the family of
these individuals and companies associated with these individuals also constitute related parties.
In considering each possible related party relationship, attention is directed to the substance of the relationship, and not merely the legal form.
The significant investments in subsidiaries are set out in Note 12.
Relationship between company and related parties:
Related company name
178
Nationality
Relationship
TV Direct Indochina Co., Ltd.
Thailand
Subsidiary company
JML Direct (Thailand) Co., Ltd.
Thailand
Subsidiary company (Since 12 June 2013)
Shop at Home Co., Ltd.
Thailand
Subsidiary company (Since 26 November 2013)
Direct Response Television Co., Ltd.
Cambodia
Subsidiary company of TV Direct Indochina Co., Ltd.
TV Direct Lao Co., Ltd.
Laos
Subsidiary company of TV Direct Indochina Co., Ltd.
TV Direct (Malaysia) Sdn. Bhd.
Malaysia
Affiliated company of TV Direct Indochina Co., Ltd.
since 12 April 2011 until 29 January 2012
and a subsidiary of TV Direct Indochina Co., Ltd.
Since 30 January 2012
TVDI Vietnam Co., Ltd.
(Formerly “CONG TY THNN MOT
THANH VIEN TIVI TRUC TIEP”)
Subsidiary company of TV Direct Indochina Co., Ltd.
(Since 11 October 2012)
Vietnam
JML Singapore Pte. Ltd.
Singapore
Related company of JML Direct (Thailand) Co., Ltd.
TV Direct Media Sdn. Bhd.
Malaysia
Related company of subsidiary company of
TV Direct Indochina Co., Ltd.
Use Electronics (Taiwan) Co., Ltd.
Taiwan
Related company
North Pattaya Plaza Co., Ltd.
Thailand
Related company
TBM Solution Co., Ltd.
Thailand
Related company
Thaikang Trading Co., Ltd.
Thailand
Related company
Mr. Chieu Arnusorn
Cambodia
Related person of subsidiary company of
TV Direct Indochina Co., Ltd. (Until 20 July 2012)
Ms. Suraiya Binti Mohd Yasin
Malaysia
Related person of subsidiary company of
TV Direct Indochina Co., Ltd. (Until 31 July 2012)
TV Direct Public Company Limited
179
37 Related party transactions (Cont’d)
The following significant transactions were carried out with related parties.
a) Sale of goods and services and others for the years ended 31 December 2013 and 2012
Consolidated
Company
2013
2012
2013
2012
Baht
Baht
Baht
Baht
Sales of goods
Subsidiaries 1
3,626,532 13,026,707
Related company 1,775,070
1,775,070
- 13,626,53213,026,707
Service income
Subsidiaries
714,453
Sales of equipment Related company 781,760
Interest income
Subsidiaries
181,928
Related person
9,173
9,173
181,928
Sales of goods, service income and sales of equipment transactions with related party are dealt with under
the prices and terms as agreed among the parties concerned.
b) Purchases of goods and services and others for the years ended 31 December 2013 and 2012
Consolidated
Company
2013
2012
2013
2012
Baht
Baht
Baht
Baht
Purchase of goods Subsidiaries
3,314,113
Purchase airtime for
television broadcast Related company 4,564,113
Management benefit expenses
Related persons
14,992,618
13,587,373 14,992,618 13,257,373
Directors’ remuneration
Related persons
1,952,500
1,352,500
1,780,000
1,210,000
Dividend expenses Related company 5,407,237
4,533,387
5,407,237
4,533,387
Purchase of goods and services transactions with related parties are dealt with under the prices and terms as
agreed among the parties concerned.
37 Related party transactions (Cont’d)
c) Outstanding balance arising from sales/purchases of goods/services and others as at 31 December 2013
and 2012
Consolidated
Company
2013
2012
2013
2012
Baht
Baht
Baht
Baht
Trade accounts receivable (Note 9)
Subsidiary
- 22,002,492 10,682,985
Related company 527,779
527,779
- 22,002,49210,682,985
Other accounts receivables (Note 9)
Subsidiary
740,965
1,386,136
Related party
781,760
781,760
740,965
1,386,136
Advance payment (Note 9)
Subsidiary
277,800
Trade accounts payable (Note 20)
Subsidiary
(2,855,514)
-
38 Share-based payment
Share options are granted to directors and employees who meet the criteria. The exercise price of the granted
options is equal to the market price of the shares less 20% on the date of the grant. Options are conditional on the
employee completing two years’ service (the vesting period). The options are exercisable and expired on 23 August
2012 which is the initial public offering. The shares must be in a one-year silent period. The Group has no legal
or constructive obligation to repurchase or settle the options in cash.
As at 31 December 2012, 3,300,000 options are exercised and there is no outstanding options. The
exercised options in 2012 are resulted in increase 3,300,000 ordinary shares being issued at a weighted average price of
1.68 Baht per share.
The related transaction costs have been netted off with the proceeds received, and presented netted off
share premium.
180
TV Direct Public Company Limited
181
The variance between selling price to directors and employees of the Company and its subsidiaries and
selling price to the public of Baht 1,386,000 is immediately recognised in profit & loss (Note 26.1).
39 Financial instrument
a) Forward foreign currency exchange contracts
Consolidated and Company
Foreign
currency
USD
Foreign currency
contract amount
2013
1,364,463
Contract rate
2012
194,188
2013
32.92 - 33.03
2012
30.69 - 30.76
2013
2012
Baht
Baht
43,676,050
6,095,303
At 31 December 2013 and 2012, the settlement dates on open forward contracts ranged between 1 month to
4 months. The local currency amounts to be received and contractual exchange rates of the outstanding contracts
were:
Net fair values
The net fair values of the derivative financial instruments at the date of statement of financial position were:
Consolidated and Company
2013
2012
Baht
Baht
Favourable forward foreign currency exchange contracts
45,030,155
5,961,455
The fair values of the forward foreign exchange contracts have been calculated using rates quoted by the
Group’s bankers to terminate the contracts at 31 December 2013 and 2012.
182
TV Direct Public Company Limited
39 Financial instrument and risk management (Cont’d)
-
Available-for-sale investments
Restricted deposits at financial
institutions
Total financial assets
-
Employee benefits obligation
243,417,092
-
Liability under finance lease
agreements (net)
Total financial liabilities
116,361,125
-
Long-term borrowings from
financial institutions
Trade accounts payable
and other accounts payable
Short-term borrowings from
financial institutions
127,055,967
-
Trade accounts receivable and
other accounts receivable (net)
Financial liabilities
-
Cash and cash equivalents
Financial assets
Interest
Rates
Floating
-
-
-
-
-
-
76,820,992
-
-
-
76,820,992
Less than
1 year
-
-
-
9,237,114
-
9,237,114
-
-
-
29,673,196
29,673,196
1-5
years
Remaining period
before maturity date
or reprising date
Fixed interest rate
bath
284,429,123
14,428,964
-
-
270,000,159
-
310,689,226
-
154,598,313
106,456,955
49,633,958
Without
interest
Total
537,083,329
14,428,964
9,237,114
116,361,125
270,000,159
127,055,967
417,183,414
29,673,196
154,598,313
106,456,955
126,454,950
2013
Consolidated
-
-
MLR - 1.25%
-
MLR - 2% to MLR - 1%
-
-
-
-
Interest rate (%)
Float rate
Outstanding balance of significant financial assets and financial liabilities and their interest rates as at 31
December 2013 and 2012 are summarised as follows:
b) Interest rate risk
-
8.91% - 10.81%
-
-
-
1.75% - 3.00%
-
-
0.125% - 0.63%
Fixed rate
-
-
-
-
Trade accounts receivable and
other accounts receivable (net)
Available-for-sale investments
Restricted deposits at financial
institutions
Total financial assets
255,972,679
-
72,385,010
-
-
328,357,689
Short-term borrowings from
financial institutions
Trade accounts payable
and other accounts payable
Long-term borrowings from
financial institutions
Liability under finance lease
agreements (net)
Employee benefits obligation
Total financial liabilities
Financial liabilities
-
Cash and cash equivalents
Financial assets
Interest
Rates
Floating
-
-
-
-
-
-
32,534,555
-
-
-
32,534,555
Less than
1 year
14,204,907
-
14,204,907
-
-
-
32,257,138
32,257,138
-
-
-
1-5
years
Remaining period
before maturity date
or reprising date
Fixed interest rate
Baht
39 Financial instrument and risk management (Cont’d)
301,876,766
8,907,732
-
-
292,969,034
-
181,673,733
-
27,259,178
139,623,080
14,791,475
Without
interest
Total
644,439,362
8,907,732
14,204,907
72,385,010
292,969,034
255,972,679
246,465,426
32,257,138
27,259,178
139,623,080
47,326,030
2012
Consolidated
-
-
MLR - 1.5% to MLR 1.25%
-
MLR - 2% to MLR - 1%
-
-
-
-
Float rate
Fixed rate
-
8.91% - 13.22%
-
-
-
1.75% - 3.00%
-
-
0.125% - 0.75%
Interest rate (%)
183
40Commitments
40.1 Commitments under letter of guarantee
In the normal course of its business, the Company provides guarantees and letter of credit generally through
the banks to its suppliers for the purchases of goods, airtime rental and electricity.
As at 31 December 2013 and 2012, the bank guarantees and letter of credits issued on behalf of the
Company were outlined below:
Consolidated and Company
2013
2012
Million Baht
Million Baht
Goods (Note 21)
106.40
73.83
Airtime rental (Note 21)
14.14
14.9
Electricity
1.780.84
122.32
89.62
40.2 Commitments under agreements
As at 31 December 2013 and 2012, the Company had commitment in respect of rental and services
agreements which have obligations to pay as following:
Consolidated
2013
2012
Rental
Services
Rental
Services
agreements agreements agreements agreements
Due within the years ending Baht
Baht
Baht
Baht
31 December 2013
- 47,110,748 115,250,565
31 December 2014
64,840,948 116,090,083 36,168,130 50,364,455
31 December 2015
34,759,935 42,960,759 12,403,309 20,525,236
31 December 2016 12,964,960
165,000
11,178,424
31 December 2017 - 2021
13,126,444
125,692,287159,215,842106,860,611186,140,256
Company
2013
2012
Rental
Services
Rental
Services
agreements agreements agreements agreements
Due within the years ending
Baht
Baht
Baht
Baht
31 December 2013
- 44,594,008 113,875,565
31 December 2014
64,784,014 116,090,083 35,406,130 50,364,455
31 December 2015
34,759,935 42,960,759 11,993,309 20,525,236
31 December 2016 12,964,960
165,000 11,178,424
31 December 2017 - 2021
13,126,444
125,635,353 159,215,842 103,171,871184,765,256
184
TV Direct Public Company Limited
185
40.3 Capital commitments
As at 31 December 2013, the Company has capital commitments in purchase of computer software amounting to Baht 6,815,100 (2012 : capital commitments in respect of building construction and purchase of computer
software amounting to Baht 46,330,013 and Baht 5,088,920, respectively).
186
TV Direct Public Company Limited
187
188
TV Direct Public Company Limited